($1 = 81.9910 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; editing by Eileen Soreng, Sonia Cheema and Savio D'Souza)
+919769003463)) (Updates closing levels)
By Bharath Rajeswaran
BENGALURU, March 9 (Reuters) - Indian shares posted
their biggest one-day drop in over two weeks on Thursday,
snapping a three-session winning streak, as concerns of a
prolonged high-interest rate regime weighed on sentiment.
The Nifty 50 index closed 0.93% lower at 17,589.60,
while the S&P BSE Sensex ended down 0.90% at 59,806.28,
notching their worst day since Feb. 22.
The domestic equities finally gave in to the pressure of
worries that the Federal Reserve and other major central banks
will continue to raise rates higher and for longer. Twelve of the 13 major sectoral indexes declined, with the
heavyweight financials and information technology
(IT) indexes losing 0.75% and 1.08%, respectively.
IT stocks, in particular, are sensitive to rate hikes in the
United States and Europe where a majority of their clients are
based.
Analysts expect the Nifty 50 to trade in a narrow range
until the Fed's policy decision on March 22, at which it is
expected to raise rates by 50 basis points. "A 50 bps rate hike in the next Fed meeting is a given. With
further rate hikes, debt will become more attractive," said G
Chokkalingam, founder and chief investment officer at Equinomics
Research.
"Investors will wait for the monsoon forecast, rate hike
trajectory, revival in domestic corporate earnings and growth
figures before they turn definitively turn positive on the
Indian markets."
Meanwhile, the metal index was the only bright
spot, advancing 0.06% on hopes that the reopening of the Chinese
economy would boost demand.
Tata Steel , Hindalco and JSW Steel were among the top gainers in the Nifty 50.
They were joined by Bharti Airtel, which rose 0.78% after
brokerage CLSA projected a 3% increase in average revenue per
user (ARPU) due to a 57% hike in its entry-level tariff plans.
Reliance Industries led the Nifty 50 losers with a
drop of 2.4% on multiple block deals.
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