Snap Stock- Indian shares set to snap four-day rally as metals lose lustre
BENGALURU, May 11 (Reuters) – Indian shares were on course
to snap a four-session rally on Tuesday as metal stocks
retreated from record highs and financials dipped, with
sentiment taking a hit following declines in Asia on U.S.
The NSE Nifty 50 index fell 0.65% to 14,844.7 by
0432 GMT, while the S&P BSE Sensex dropped 0.69% to
Asian shares slipped following a weak close on Wall Street
overnight, with U.S. inflation expectations surging to their
highest in a decade as the economy reopens from pandemic-induced
“Inflation worries seem to be real over the next few months
and quarters in the U.S. context … the reaction is primarily
on this count,” said Mayuresh Joshi, head of equity research at
William O’Neil & Co in India.
“There are concerns of an earlier-than-anticipated stop to
the liquidity push and of interest rate hikes happening
gradually and earlier than anticipated.”
India’s Nifty and Sensex have gained about 3% and 2.5%,
respectively, over the last four sessions, amid abundant
liquidity and on pandemic relief measures.
On Tuesday, the Nifty Metal index dropped 3%
after a commodity-driven four-day rally to record highs.
Nifty 50 components JSW Steel and Tata Steel
slipped 3.2% each.
The Nifty Bank index slid 1.6%, with top
private-sector lender HDFC Bank declining 1.8%.
Indigo-owner Interglobe Aviation gained more than
2% after the company approved a 30 billion rupee ($408.25
million) fund raise.
Coal India was the top gainer in the Nifty 50,
rising as much as 5.5% to a two-month high. The stock is set for
a sixth straight session of gains.
Meanwhile, with coronavirus infections and deaths holding
close to record daily highs, calls have increased for a national
lockdown. The World Health Organization has classified the virus
variant first identified in India last year as a variant of
($1 = 73.4850 Indian rupees)
(Reporting by Chris Thomas in Bengaluru; Editing by Vinay
Dwivedi and Anil D’Silva)