India’s equity benchmarks snapped asix-session winning streak on Tuesdaydue to losses in information technology and metal stocks, as investors awaited key U.S. economic data releases that would offer cues on whether the Federal Reserve cuts rates next month.
The Nifty 50 fell 0.4% to 25,910.05, while the BSE Sensex lost 0.33% to 84,673.02.
All the 16 major sectors fell on the day. The broader small-caps and mid-caps lost 1.1% and 0.6%, respectively.
The benchmarks climbed about 2% in the previous six sessions, supported by an earnings season that had no major disappointments, strong domestic inflows, and the end of the U.S. government shutdown. The indexes are now about 1.5% below their record highs hit in September 2024.
“The market needs fresh triggers for further upside from hereon. These triggers could be sustenance of strong consumption trend seen during festive season or a trade deal between the U.S. and India,” said Dharmesh Kant, head of equity research at Cholamandalam Securities.
Metal stocks slipped 1.1% on the day as stronger dollar weighed on base metal prices amid uncertainty over Fed rate cuts.
IT companies which derive a significant chunk of revenue from the U.S., also dropped 1.1% and were among the top two contributors to Nifty’s losses.
The losses were driven by uncertainty over Fed rate cut in December, and a global sell-off in technology stocks on valuation concerns and ahead of chipmaker Nvidia’s earnings.
The release of delayed U.S. data, including September jobs report, following the end of federal government shutdown will be crucial for investors to assess the prospects of a rate cut next month.
Higher U.S. rates make investments in emerging markets such as India less attractive for overseas investors.
Edtech firm PhysicsWallah soared 42.4%, adding to the list of strong debuts from Groww and Pine Labs last week.
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