BENGALURU: Indian shares struggled for direction on Monday on worries that the US Fed would keep interest rates higher for longer while rising concerns after North Korea fired more ballistic missiles added to the dour mood.
The Nifty 50 index was up 0.26% at 17,989.55 as of 10:01 a.m. IST, while the S&P BSE Sensex was higher by 0.41% at 61,252.99.
Six of the 13 major sectoral indexes fell with pharma index losing nearly 1%. Cipla, the second highest weighted stock in the pharma index, tumbled nearly 7%, to a near-seven-month low after the company’s Pithampur unit received eight observations from US drug regulator after inspection.
The stock was the top Nifty 50 loser. Beating the weak sentiment, Hindustan Unilever rose nearly 1% and was among the top Nifty 50 gainers after the FMCG major agreed to sell and divest brands in its foods business, including “Annapurna” and “Captain Cook.”
Samvardhana Motherson climbed as much as 5.7% after French car parts maker Faurecia agreed to sell its SAS cockpit modules arm to Motherson Group.
The ongoing concerns over the future rate hiking path in the US remained an overhang after official data showed a rise in export prices in January.
Investors await the minutes of the Fed’s meeting, due on Wednesday, to assess the US central bank’s future rate hiking path.
Indian shares decline on Fed worries
US markets will be closed on Monday for a local holiday. Meanwhile, North Korea fired two more ballistic missiles off its east coast earlier in the day after the country fired an intercontinental ballistic missile into the sea off Japan’s west coast on Saturday and warned US forces to halt their military drills in the pacific, keeping investors on edge.
Asian markets recovered from a mixed start, with the MSCI’s broadest index of Asia-Pacific shares outside Japan rising 0.65%.
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