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Indian shares end slightly lower as global inflation worries weigh

 

Indian shares end slightly lower as global inflation worries weigh

Mumbai 8 June 2021 – Indian shares ended a tick lower on Tuesday as concerns around rising global inflation and high valuations in the domestic market outweighed optimism around the country’s declining COVID-19 cases.

The blue-chip NSE Nifty 50 index (.NSEI) closed down 0.07% at 15,740.10, while the benchmark S&P BSE Sensex (.BSESN) settled 0.1% lower at 52,275.57.

Both indexes had scaled record peaks on Monday as some Indian states eased lockdowns and daily COVID-19 cases hit a two-month low.

“Globally, inflation is still a worry and in India, participants are bracing for states to lift restrictions,” said Anand James, chief market strategist at Geojit Financial Services in Kochi.

Analysts also said investors were uneasy about high valuations in the home market, while they looked to key central bank meetings for clues on the direction of the world economy.

U.S. inflation data is due later this week and will be closely watched for clarity on tapering of policy support from the Federal Reserve. The European Central Bank is also set to meet later in the week.

On Tuesday, the three biggest drags on the Nifty 50 were HDFC Bank (HDBK.NS), mortgage lender HDFC (HDFC.NS), and ICICI Bank (ICBK.NS). The private-sector bank’s index (.NIFPVTBNK), which has added 7.28% this year, fell 0.98%.

IT stocks extended gains to a fourth session and closed up 1.2%, boosted by a 1.7% rise in index heavyweight Infosys Ltd (INFY.NS)

Meanwhile, daily COVID-19 cases in India eased, with data from the health ministry on Tuesday showing 86,498 infections in the last 24 hours, the lowest in 66 days.

Anupreet Kaur

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