MUMBAI: India’s equity benchmarks inched lower on Monday, dragged by information technology stocks, as investors traded cautiously ahead of an expected US Federal Reserve rate cut at its policy meeting this week.
The Nifty 50 fell 0.18 percent to 25,069.20, snapping an eight-session winning streak, its longest in a year. The BSE Sensex dipped 0.15 percent to 81,785.74.
The Nifty had risen 1.5 percent last week, supported by optimism over US-India trade negotiations and government tax cuts aimed at boosting consumption.
“After the recent rebound, slight profit booking or a minor time-wise consolidation cannot be ruled out. However, such dips could offer fresh entry opportunities,” said Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.
On Monday, nine of the 16 major sectors advanced.
IT, which had climbed 4.3 percent last week, fell 0.6 percent and was the biggest drag.
Realty shares gained 2.4 percent on plans to ease height restrictions on buildings in the north Indian city of Noida and upbeat brokerage commentary.
Asian markets were flat ahead of the Fed meeting on Wednesday, with investors betting on a rate cut that could weaken the dollar and boost flows to emerging markets.
“While liquidity is tightening due to persistent foreign outflows, promoter selling, and a shift to robust initial public offerings, a Fed rate cut and progress in US-India trade talks could quickly spark recovery,” said G. Chokkalingam, founder and head of research at Equinomics Research.
Comments
Comments are closed for this article.