India Stocks: India's Nifty snaps eight-day win streak on Fed concerns; logs weekly gain

ideaForge Technology

07/07/2023 11:41

(Updated at 3:30 p.m. IST)
    By Bharath Rajeswaran
       BENGALURU, July 7 (Reuters) - India's blue-chip Nifty 50
index fell for the first time in nine sessions on Friday,
succumbing to the persistent concerns of U.S. rate hikes that
have weighed on global equities.
    The Nifty 50  .NSEI  settled 0.85% lower at 19,331.80, while
the 30-member S&P BSE Sensex  .BSESN  fell 0.77% to 65,280.45.
    Both indexes hit record highs for the sixth time in seven
sessions before reversing course. Still, the recent rally,
helped the Nifty and Sensex end the week with gains of 0.74% and
0.87%, respectively.
    The resilience of the U.S. labour market, as measured by
private payrolls, further fanned fears that the Federal Reserve
would prolong its high-interest regime and triggered a fall in
equity markets across the world.  MKTS/GLOB 
    Indian equities had been resisting the pressure for the past
few sessions but the rally, said brokerage CSLA, may over-extend
domestic valuations.
    The brokerage said a pullback from the record-high levels
was likely since investor sentiment - measured by the bull-bear
index - has swung from an extremely bearish reading of 8.2% in
March to an extremely bullish reading at 95.9% in early July.
    The weakness in Indian equities was broad with 10 of the 13
major sectoral indexes finishing lower, and the smallcap
 .NIFSMCP100  and midcap  .NIFMDCP100  indexes declining 0.44%
and 0.81%, respectively.
    The high-weightage financials  .NIFTYFIN  fell 0.90%.
    Mahindra & Mahindra Financial Services  MMFS.NS  lost 3.56%
after BofA Securities downgraded the stock to "neutral" from
"buy", citing high valuations and elevated operating costs.
    Fast moving consumer goods  .NIFTYFMCG  slid over 1.5% after
liquor makers declined following reports that the state of
Karnataka proposed to hike excise duty on Indian-made liquor and
beer.
    Among the bright spots, Tata Motors  TAMO.NS  jumped to a
record high after its Jaguar Land Rover unit gave upbeat
first-quarter sales and free cash flow forecasts, while drone
maker ideaForge  IDEF.NS  soared nearly 93% in its market debut.

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India's Nifty 50 logs weekly gains despite slide on Friday 
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 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Nivedita Bhattacharjee, Janane Venkatraman and Varun H K)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))