Indian shares slip from record highs as IT firms drag ahead of earnings
BENGALURU (Reuters) – Indian shares fell on Tuesday after hitting record highs in the previous session as IT stocks lost ground ahead of quarterly results, while weak global cues over inflation worries and an energy crunch also dampened sentiment.
The NSE Nifty 50 index was down 0.15% at 17,921.10, while the S&P BSE Sensex fell 0.17% to 60,033.69 by 0515 GMT. Both indexes had scaled record peaks in the previous session.
Flush with liquidity and aided by factors such as COVID-19 vaccinations and easing restrictions, Indian markets have outperformed their Asian peers this year.
“Although there is money, there is a bit of caution because global markets are a bit shaky … so investors are waiting to see how earnings will pan out,” said Deepak Jasani, head of retail research at HDFC Securities in Mumbai.
The Nifty IT index fell 1.5%, with sector heavyweight Infosys losing 1.2% a day before quarterly results. HCL Technologies, due to report results on Thursday, was down 4.4%.
Tata Consultancy Services, which kicked off IT earnings last week, fell 1%. Analysts have flagged indications of moderating deal wins and margin pressure in future quarters.
Lender ICICI Bank slipped 1.1% and was the top drag on the Nifty’s private bank index, which lost 0.5%.
Nifty auto stocks, however, rose 1.3% to their highest level since May 2018 as Tata Motors extended gains for a fourth straight session to add 4.8%. On Monday, the Jaguar Land Rover maker said global wholesales in the second quarter were up 24% from a year earlier.
Jewellery maker Titan Company rose 3.2% and was among the top gainers, riding on hopes of better business during the upcoming festive season, when Indians make big-ticket purchases.
Investors are also awaiting retail inflation data due later in the day, with a Reuters poll of analysts expecting inflation to have eased again in September.
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