By Bharath Rajeswaran
(Reuters) -Indian shares fell on Thursday, dragged down by heavyweight IT firms on resurgent uncertainties over the trajectory of U.S. interest rate cuts.
The NSE Nifty 50 was down 0.77% at 24,089 points as of 11:14 a.m. IST, while the BSE Sensex lost 0.81% to 79,582.31. Both the benchmarks had earlier risen about 0.3% each.
Eight of the 13 major sectors declined. High-weightage information technology stocks fell 2%, while financials and banks shed about 0.3% each.
Overnight, U.S. inflation data signalled that the pace of rate cuts is going to be slower than expected, dragging IT stocks 2% lower.
A slowdown in U.S. rate cuts directly impacts client spending and affects sectors such as Indian IT.
“We expect markets to remain volatile as lower pace of rate cuts given higher growth in the U.S, and likely higher inflation (after Trump’s presidential win),” said Krishna Rao, co-head – equity broking group, at JM Financial Services.
Among individual stocks, Adani Enterprises, the Adani Group’s flagship firm, rose 3%. Adani Green Energy and Adani Energy Solutions jumped about 9% each.
Adani Total Gas rose 13%. Adani Group stocks extended a rebound from a selloff triggered by the U.S. indictment of the group’s founder last week. The Group has denied the allegations.
Meanwhile, the broader, more domestically focused small- and mid-caps were up about 0.2% each, respectively, trimming early gains.
($1 = 84.4100 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Sonia Cheema)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.