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BENGALURU, Feb 13 (Reuters) - Indian shares declined on
Monday, ahead of domestic retail inflation data due later in the
day, while the ongoing uncertainty and spillover effects from
the Adani Group's market rout continued to create an overhang.
The Nifty 50 index was down 0.42% at 17,782.20 as of
11:16 a.m. IST, while the S&P BSE Sensex fell 0.41% to
60,429.73.
"We are far away from comfort on the inflation front," said
Avinash Gorakshakar, head - research at Profitmart Securities.
Two more hikes from the U.S. Federal Reserve cannot be ruled
out, he added.
Investors await India's retail inflation data for January,
due today. A Reuters poll of economists showed that India's
annual retail inflation rose to 5.9% from a 12-month low in
December, but stayed within the 6% upper limit of RBI's
tolerance band in January.
Wall Street equities closed lower on Friday, on fears of a
longer-than-expected high-rate regime after hawkish comments
from key Fed officials. The U.S. inflation data is due on
Tuesday.
All the 13 major sectoral indexes declined in domestic
trading, with information technology stocks falling
nearly 2% amid worries of a growth slowdown in the United
States, from where they get a significant share of their
revenue.
Thirty-three of the Nifty 50 constituents declined with
Adani Enterprises , State Bank of India Infosys and Tata Consultancy Services among
the top losers.
Titan Co was the top gainer, climbing 2% after
positive commentary from Goldman Sachs on the company's growth
outlook and demand.
The uncertainty over the Adani conglomerate added to
concerns in domestic markets.
"A lot of retail investors have got stuck in this selloff,"
said Gorakshakar. "If anything goes wrong in the cashflows of
the Adani group companies, the whole debt repayment cycle will
go for a toss."
India's market regulator will update the finance ministry
this week on its investigation into the Adani Group's withdrawn
$2.5 billion follow-on public issue, Reuters reported on Monday
citing two sources.
($1 = 82.5250 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Janane Venkatraman and Nivedita Bhattacharjee)
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