Indian shares set for weekly drop; tech stocks top drag for day
India Today
Indian shares fell 1% on Friday and kept benchmark indexes on course for their first weekly drop in four.
Indian shares fell 1% on Friday and kept benchmark indexes on course for their first weekly drop in four, as investors across the globe worried about the impact of aggressive monetary policy tightening on economic growth.
The NSE Nifty 50 index dropped 1.09% to 16,298.25 by 0505 GMT and the S&P BSE Sensex fell 1.16% to 54,676.97, hammered by losses in technology and metal stocks.
Worries that aggressive tightening of monetary policies to combat stubborn inflation could stifle economic growth have weighed on global investor sentiment this week.
On Friday, Asian shares fell with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down 1.2%, as the European Central Bank's rate-hike guidance and upcoming U.S. inflation data unnerved investors.
In a widely expected move on Wednesday, the Reserve Bank of India raised the repo rate by 50 basis points just a month after unveiling an unscheduled 40-bp hike, signalling more tightening ahead to fight soaring inflation.
"Global stock markets are seeing negative moves post the ECB meeting. Until the next U.S. Fed outcome, Indian markets could remain directionless," said Narendra Solanki, head of equity research (fundamental) at Anand Rathi Investment Services.
"Comments on inflation and the upcoming Fed meeting will be key data points that will help markets decide next moves."
