off-the-wire

INDIA STOCKS-Indian shares fall on rate fears after Powell reiterates hawkish message

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds opening levels) BENGALURU, March 9 (Reuters) - Indian shares opened lower on Thursday on concerns of a prolonged high-interest rate regime after U.S. Federal Reserve Chair Jerome Powell reiterated his hawkish stance on the second day of his congressional testimony. The Nifty 50 index fell 0.17% to 17,724.90, while the S&P BSE Sensex lost 0.25% to 60,196.88, as of 9:32 a.m. IST. Ten of the 13 sectoral indexes declined, with heavyweights finance and information technology losing 0.1% and 0.3%, respectively.


The slide in IT stocks, which earn a significant share of their revenue from the U.S., comes after Powell said that the U.S. central bank would continue to ratchet up policy rates until inflation subsides.


IT companies are sensitive to the possibility of higher rates curbing client spending.


On the flip side, metals advanced over 1% after global brokerage firm Jefferies said the recent slide in metals presented a buying opportunity as valuations turned attractive. The metal index has fallen over 15% so far in 2023 compared to a 2% slide in the benchmark Nifty 50 index.


Hindalco , Tata Steel and JSW Steel were among the top gainers in the Nifty 50 index.


Among individual shares, Sequent Scientific jumped over 11% after terminating a share purchase agreement to acquire Tineta Pharma. SBI Life lost over 1% and was the top Nifty 50 loser after reporting tepid growth in premium collections in February. ($1 = 81.9910 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; editing by Eileen Soreng and Sonia Cheema)

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