Indian shares snap three-day winning streak led by IT, metal losses
- Nifty 50 closed 0.52% lower at 25,642.8, while the BSE Sensex lost 0.6% to 83,313.93
Indian share benchmarks ended a three-day winning run on Thursday, tracking a global selloff in information technology and metal stocks, while optimism over the U.S. trade deal moderated.
The Nifty 50 closed 0.52% lower at 25,642.8, while the BSE Sensex lost 0.6% to 83,313.93.
Fourteen of 16 major sectors logged losses. The broader small-caps and mid-caps fell 1.3% and 0.3%, respectively.
Heavyweight financials lost 0.4% and Reliance Industries fell 0.9%, after jumping about 4% and 8%, respectively, in the last three sessions.
“We are witnessing profit booking after the jump post-U.S. trade deal. But the outlook is constructive as foreign flows look to be improving. This is reflected in Wednesday’s FPI number as they were net buyers even when the IT index was down 6%,” said Pankaj Pandey, head of retail research at ICICI Securities.
IT stocks dropped 0.6%, extending Wednesday’s 6% slump, as concerns over artificial intelligence-driven disruption kept investor sentiment subdued towards software companies.
“Redirection of clients’ tech budgets towards AI spends may lead to near-term headwinds for IT software and services companies fighting for the same pie,” said Sorbh Gupta, head of equity at Bajaj Finserv Asset Management.
However, the risk of generative AI becoming an existential threat to software companies was minimal, Gupta said.
Multi Commodity Exchange of India dropped 5.2% as gold and silver prices dropped.
Metal stocks, which were up 6% in the last three sessions, slid 1%, tracking lower commodity and precious metal prices as a stronger dollar made commodities more expensive for holders of other currencies.
Hindalco, Vedanta and Hindustan Zinc dropped 3% to 5%, topping the list of losers on the metal index.
Among stocks, quick service restaurant operators Devyani International and Westlife Foodworld jumped 7.2% and 12.3%, as analysts pointed to signs of turnaround after their third-quarter earnings.
Investors now await the Reserve Bank of India’s policy decision on Friday, where the central bank is widely expected to keep rates unchanged.
Comments
Comments are closed for this article.