Most auto stocks declined on Friday, tracking overall losses in domestic markets as back-to-back stronger than expected inflation report from the US belied hope of a sooner rate cut.

The rate sensitive NSE Nifty Auto fell 2.18% to hit a month low of 20,066.80 so far on Friday. The index traded 413.75 points, or 2.02%, lower at 20,100.50 as of 12:12 p.m.

Underlying US inflation topped forecasts for a second month in February, reinforcing the Federal Reserve’s cautious approach to cutting interest rates, according to Bloomberg.

This pushed the benchmark 10-year U.S. Treasury yield to over two week high of 4.29%, U.S. Department of Treasury’s website showed.

Additionally, the dollar index rose to over one-week high of 103.40 on Tuesday.

This in turn made riskier assets like emerging market securities less attractive to investors. Losses in Asian equity market also weighed on Indian markets.

The NSE Nifty Index declined 0.96% to hit a intraday low of 21,934.10. It was trading 201.50 points, or 0.91%, lower at 21,945.15 as of 12:12 p.m.