Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Indian shares end four-day rally on inflation worries

05/11/2021 | 06:28am EDT
A woman walks past the Bombay Stock Exchange building in Mumbai

BENGALURU (Reuters) - Indian shares snapped a four-session rally on Tuesday as financial and IT stocks slid amid worries that a potential acceleration in U.S. inflation could lead to foreign fund outflows from the region.

The NSE Nifty 50 index fell 0.61% to 14,850.75, while the S&P BSE Sensex slid 0.69% to 49,161.81.

Stock markets in Asia and Europe dropped as U.S. inflation expectations surged to their highest in a decade with the economy reopening from pandemic-driven shutdowns, fanning concerns that interest rate hikes could arrive earlier than expected. [MKTS/GLOB]

April consumer price data for the United States is due on Wednesday.

"Markets will keenly watch the inflation data from the U.S. as any unexpected rise could lead to potential interest rate hikes and stoke fears of institutional money moving out. This could lead to pressure on the Indian banking space in particular," said Gaurav Garg, head of research, CapitalVia Global Research.

This comes even as the Reserve Bank of India is expected to maintain status quo on rates as inflation is likely to remain within its target.

Over the last four sessions, India's Nifty and Sensex had gained about 3% and 2.5%, respectively, even as domestic coronavirus cases surged.

Shares of lenders accounted for most of the losses on the benchmark Nifty on Tuesday. The Nifty Bank index fell 0.8%, with top private-sector lender HDFC Bank declining 1.2%.

The Nifty Metal index dropped 0.9% after a commodity-driven four-day rally to record highs, while IT majors Infosys and Tata Consultancy Services slipped 0.7% each.

State-run firms Coal India, NTPC, Indian Oil Corp and GAIL were among the top gainers in the Nifty 50, rising 4.6%-5.9%.

($1 = 73.4850 Indian rupees)

(Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu Sahu)

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
COAL INDIA LIMITED -1.08% 142.45 Delayed Quote.6.31%
JSW STEEL LIMITED 0.86% 710.45 End-of-day quote.83.44%
TATA STEEL LIMITED 2.50% 1330.5 End-of-day quote.106.74%
Latest news "Economy & Forex"
05:43pCOST OF A DATA BREACH : Behind the Numbers of a Cybersecurity Response Plan
05:34pThe WSJ Dollar Index Falls 0.09% to 87.27 -- Data Talk
05:34pEuro Gains 0.13% to $1.1818 -- Data Talk
05:34pSterling Gains 0.43% to $1.3876 -- Data Talk
05:33pDollar Lost 0.54% to 109.79 Yen -- Data Talk
05:28pMoody's says expects mexico’s gdp to increase 5.6% in 2021 and 2.9% in 2022, as the economy benefits from faster us growth
05:26pMoody's says fatality rate remains very high in mexico at above 9%, well above that of peer countries and the third highest in the world, which points to inadequacies in the mexican public health system
05:26pLIVESTOCK-Profit-taking drags down CME livestock futures
05:25pMoody's says although vaccinations are increasing, mexico is unlikely to meet the threshold for herd immunity by the end of 2021
05:24pMoody's says mexican mortgage lending is rebounding and now accounts for a larger share of consumer credit than personal loans
Latest news "Economy & Forex"