(Updates levels, adds analysts' comments)
BENGALURU, Feb 10 (Reuters) - Indian shares fell on
Friday, tracking a slide in global equities on fears of a
looming U.S. recession, and as sentiment soured after index
provider MSCI said it will cut the weightings of four Adani
Group companies.
The Nifty 50 index was down 0.29% at 17,841.85 as of
10:42 a.m. IST, while the S&P BSE Sensex fell 0.26% to
60,651.59.
Six of the 13 major sectoral indexes declined, with
information technology and metal falling
over 0.5% and 1.2%, respectively, amid rising growth concerns in
the U.S.
Wall Street equities closed lower following comments from
Federal Reserve officials that a recession is looming in the
world's largest economy.
Asian markets fell, with the MSCI's broadest index of
Asia-Pacific shares outside Japan sliding 1.23%. The comments from Fed officials over the last two days
indicate that the high rate regime could likely last till the
end of 2023 or even early 2024, said Narendra Solanki, head of
equity research at Anand Rathi Shares & Stock Brokers.
However, Indian equities have a limited downside due to
significant correction and markets will likely witness sideways
movement in the next few weeks in the absence of any major
triggers, two analysts said.
Adding to the concerns in domestic equities was the
uncertainty over the Adani conglomerate's future trajectory,
after financial index provider MSCI said it will cut the
weightings of four group companies. Analysts have warned the
move could lead to outflows and a further slide in value.
Most Adani group stocks extended their decline in Friday's
session. "MSCI ETF has a significant fund size. If the MSCI cuts
weightings on Adani group companies, it would have a bearing on
the flows into the respective stocks," Solanki added.
Among other stocks, Bajaj Finance gained 1% after
Jefferies hiked its investment in the company in its key
portfolios.
($1 = 82.5250 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Janane Venkatraman and Nivedita Bhattacharjee)
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