India Stocks: Indian shares muted as metals, financials weigh

Sanghi Industries

26/06/2024 06:22

(Updates at 10:25 a.m. IST)
    By Hritam Mukherjee and Bharath Rajeswaran
       BENGALURU, June 26 (Reuters) - Indian shares edged lower
on Wednesday, weighed by metal stocks that fell as a strong
dollar hurt global metal prices while financials declined
after a rally in the previous session.
    The NSE Nifty 50 index  .NSEI  shed 0.09% to 23,702 at 10:25
a.m. IST and the S&P BSE Sensex  .BSESN  was down 0.03% to
78,024.33. The Sensex rose about 0.15% to a record high in early
trade.      
    "There are lack of triggers, so the moves on Nifty could be
incremental but the outlook is positive given the liquidity
surplus due to rising investor base, macroeconomic and earnings
outlook," Aishvarya Dadheech, founder and chief investment
officer of Fident Asset Managers said.
    India's national budget and companies' quarterly results,
both due next month, will decide the markets' trajectory in the
near term, Dadheech said.     
    Financials  .NIFTYFIN  and private banks  .NIFPVTBNK , which
have outperformed the benchmarks so far in June, were both down
0.3%. They have risen 8% this month compared with a 5% gain for
the Nifty 50.
    Metals  .NIFTYMET  fell 1.3% on soft global prices due to a
strong dollar. 
    A firmer U.S. dollar makes dollar-denominated metals more
expensive to holders of other currencies.  MET/L 
    Investors awaited a key U.S. inflation print due this week,
which could impact the greenback. 
    Miner Vedanta  VDAN.NS , which has a nearly one-tenth
weightage in the metal index, was down 3% after its parent
announced plans to sell 2.6% stake to a group of institutional
investors.
        Realty stocks  .NIFTYREAL  dropped 1% while auto shares
 .NIFTYAUTO  shed 0.5%. The consumer index  .NIFTYFMCG  was
little changed.
    State-run Mazagon Dock Shipbuilders  MAZG.NS  rose 4.5% to a
record high after getting the so-called "Navratna' status from
the government, giving the company freedom to make bigger
investments.
    Sanghi Industries  SNGI.NS  fell on a top shareholders'
stake sale, which was at a discount to its previous close.
        
  
    

 (Reporting by Hritam Mukherjee and Bharath Rajeswaran in
Bengaluru; Editing by Mrigank Dhaniwala)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))