Indian shares fall as tech firms drag; Fed rate decision eyed

Heavyweight technology stocks dragged India’s blue-chip share indexes lower on Tuesday, ahead of earnings reports from several large-cap companies, with investors also bracing for a likely sharp interest rate hike in the United States this week.

The NSE Nifty 50 index (.NSEI) was down 0.66% at 16,521.5, by 0448 GMT, while the S&P BSE Sensex (.BSESN) slipped 0.69% to 55,382.58.

“Investors are likely to be in a wait-and-watch mode as all eyes will be on the U.S. Federal Reserve’s rate decision,” said Prashanth Tape, research analyst at Mehta Equities.

Asian peers were also on tenterhooks ahead of the likely 75-basis-point Fed rate hike, while a profit warning from U.S. retailer Walmart dampened sentiment.

“After Walmart’s comments on inflation and growth, market jitters have increased ahead of the Fed policy meet, and that has spilled over into the domestic market despite a better than expected earnings season,” said Aishvarya Dadheech, a fund manager at Ambit Asset Management.

Meanwhile, after heavy foreign outflows every month since November, Indian equities have received a net $52.95 million of inflows this month till Monday. For the month so far, the Nifty and the Sensex are up about 4.5% each.

Private lender Axis Bank (AXBK.NS) slid 2.3% in its biggest intraday percentage drop in nearly a month despite a beat on quarterly profit, as analysts flagged soft loan growth.

Meanwhile, after heavy foreign outflows every month since November, Indian equities have received a net $52.95 million of inflows this month till Monday. For the month so far, the Nifty and the Sensex are up about 4.5% each.

Private lender Axis Bank (AXBK.NS) slid 2.3% in its biggest intraday percentage drop in nearly a month despite a beat on quarterly profit, as analysts flagged soft loan growth.

Source by: Reuters