BENGALURU: Indian shares fell on Tuesday as TCS led a sharp decline in information technology stocks ahead of the US Federal Reserve’s interest rate decision and commentary that could impact the extent of foreign fund inflows.
The blue-chip NSE Nifty 50 index lost 1.08% to 21,817.45, while the BSE Sensex settled 1.01% lower to 72,012.06. The Nifty 50 and Sensex closed at their lowest since Feb. 13 and Feb. 14, respectively.
Information technology (IT) stocks, which are sensitive to US interest rates, fell 2.9% on Tuesday, the most among the major sectors.
Expectations of a rate cut by the US central bank have receded due to recent hotter-than-expected inflation data.
“Fears of lower quantum and a reduction in the number of Fed rate cuts in 2024 on the back of recent US data have weighed on sentiment,” Saurabh Jain, assistant vice president of research at SMC Global, said.
Hawkish commentary from the Fed on Wednesday could hurt foreign inflows, Jain added.
Tata Consultancy Services lost about 4.2% following top shareholder Tata Sons’ plan to sell a $1.13 billion stake at a 3.7% discount.
All 13 sectors logged losses with fast-moving consumer goods, energy, oil and gas, pharma and media stocks shedding between 1.5% and 2.5%.
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