Indian shares extended losses for a fifth straight session on Wednesday, dragged by financials while favourable inflation data in the United States improved the odds of a smaller rate hike at the upcoming Federal Reserve meeting, limiting the losses. The Nifty 50 index closed 0.42% lower at 16,972.15, while the S&P BSE Sensex fell 0.59% to 57,555.90. Both the indexes advanced nearly 1% during the session before reversing the gains.
The benchmarks mirrored high weightage financials , which closed 0.77% lower. Ten of the 13 major
sectoral indexes logged losses.
The Sensex and Nifty defied recovery in global markets
after in-line U.S. inflation data bolstered bets of a smaller 25
basis-point rate hike by the Fed at its March 21-22 policy
meeting. The MSCI's broadest index of Asia-Pacific shares
outside Japan was up 0.71%. "Markets do look oversold, but there are clouds of
uncertainties," said Atul Suri, chief executive of Marathon
Trends - PMS.
"In the short run, the Fed is likely to be moderate, which is a silver lining," Suri said, pointing to the U.S. banking crisis.
Global equities sold off over the last few sessions on fears of contagion from the failure of Silicon Valley Bank and Signature Bank in the United States.
"For long-term investors, there are value picks available in the current market. But to bet on the markets having hit a bottom already is a bit premature," said Neeraj Dewan, director at Quantum Securities.
Among individual stocks, Bharti Airtel fell nearly 2% after analysts flagged rival Reliance Jio's newly launched postpaid plans could hurt the sector and pose downside risk to earnings growth.
Asian Paints climbed almost 3% after analysts highlighted an attractive entry opportunity following a recent fall in share prices.
($1 = 82.2600 Indian rupees)
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Nifty slips below 17,000 after five months ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Nishit Navin and Bharath Rajeswaran in Bengaluru;
Editing by Janane Venkatraman, Dhanya Ann Thoppil and Eileen
Soreng)
