($1 = 82.5250 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)
+919769003463)) (Updates closing levels)
BENGALURU, Feb 10 (Reuters) - Indian shares declined on
Friday, tracking a slide in global equities on fears that
monetary policy tightening would slow down economic growth, and
as the latest chapter in the Adani Group saga soured sentiment
further.
The Nifty 50 index closed 0.21% lower at 17,856.50,
while the S&P BSE Sensex fell 0.20% to 60,682.70.
Five of the 13 major sectoral indexes declined, with
information technology and metal falling
0.4% and 1.8%, respectively.
Richmond Fed President Thomas Barkin added to the growing
list of hawkish comments from Federal Reserve officials,
sparking a slide in Asian stocks. The commentary from Fed officials over the last two days
indicates that the high-rates 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.
That correction was largely due to the fallout of Hindenburg
Research's report on the Adani Group.
The latest news was that index provider MSCI plans to cut
the weightings of Adani Enterprises and three other
group firms, which, analysts said, could lead to outflows and a
further slide in value.
India's market regulator is also probing Adani Group's links
to some of the investors in the aborted $2.5 bln secondary share
sale of the flagship Adani Enterprises, Reuters reported.
Adani Enterprises tumbled over 4% and was the top loser in
the Nifty 50 index. Most Adani group stocks extended their
decline in Friday's session.
Among individual stocks, Hindalco declined 2.56%
as analysts raised demand concerns after the company's slide in
quarterly earnings.
Paytm tumbled nearly 8% on reports that China's
Alibaba Group had sold its remaining stake in the
fintech company.
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