By Indranil Sarkar and Ashna Teresa Britto
BENGALURU (Reuters) -Indian shares fell on Monday, pulling the benchmark Nifty 50 below the 26,000 mark, as investors continued to book profits, especially in the key information technology and financial sectors.
The NSE Nifty 50 index BSE Sensex fell about 0.9% each to 25,972.25 and 84,844.85 points, respectively, as of 9:55 a.m IST.
They are on track for their steepest drop in over three weeks.
The benchmarks gained about 3.3% in six sessions after the outsized U.S. interest rate cut the week before bolstered expectations of more foreign inflows.
But the lack of any major triggers led some investors to sell the rally on Friday. That continued on Monday.
“There is no such event specific to India. It is a normal level for the market, with some amount of profit booking happening,” said Aishvarya Dadheech, CEO of Fident Asset Management.
Financial services, the heaviest weighted among the 13 major indexes, dropped 0.5%.
IT stocks, which have the second-heaviest weightage, dropped a steeper 1%.
The metals index , though, rose 1.5%, rallying for the seventh straight session buoyed by higher global prices, especially after China’s planned stimulus to boost its economy. [MET/L]
The index has surged more than 8% since China announced the stimulus measures on Sept. 24.
Comments from Federal Reserve Chair Jerome Powell and Fed Governor Michelle Bowman later in the day could provide some insight into further U.S rate cuts, giving the market direction, Dadheech said.
(Reporting by Indranil Sarkar and Ashna Teresa Britto in Bengaluru; Editing by Varun H K and Savio D’Souza)
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