BENGALURU: Indian shares fell on Friday, dragged by information technology stocks on rising worries over the US interest rate outlook, while focus shifted to the Reserve Bank of India’s (RBI) monetary policy decision.
The NSE Nifty 50 index was down 0.15% at 22,479.80, while the BSE Sensex shed 0.17% to 74,102, as of 9:49 a.m. IST.
The RBI is expected to hold rates steady for the seventh straight meeting as it announces its monetary policy decision at 10:00 a.m. IST, according to a Reuters poll of economists While the central bank could take comfort from declining core inflation, it will tread with caution, given the upside risks to food inflation from weather shocks and repricing of the easing path of US interest rates, according to Goldman Sachs.
India’s benchmark indexes Nifty and S&P BSE Sensex settled at all-time closing highs in the previous session, lifted by high-weightage financials, led by top private lender HDFC Bank on a sequential rise in deposits.
The short-term trajectory of the markets hinges on the earnings season, said Anil Rego, founder and fund manager at Right Horizons, who expects strong results from financials in the March quarter.
“We expect financial space to continue to post strong results.
Despite facing increased borrowing costs, net interest margins are likely to remain relatively stable,“ Rego added.
Financials, IT power Indian shares to record closing high ahead of RBI rate decision
Including early losses in the day, the benchmark Nifty 50 has gained 0.6% this week, on course to post a third straight week of gains.
On the day, US-rate sensitive information technology stocks dropped 0.5%, after gaining nearly 2% in the past two sessions, as comments from Federal Reserve officials on Thursday added to worries that the US central bank could delay rate cuts.
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