BENGALURU, Nov 25 (Reuters) - Indian shares edged lower on
Thursday as consumer, financials, and metals stocks slipped,
with a 2% fall in ICICI Bank weighing the most on the blue-chip
Nifty 50 index.
The benchmark S&P BSE Sensex was down 0.05% at
58,313.06 by 0502 GMT, while the NSE Nifty 50 index
dipped 0.07% to 17,403.10.
"Structurally, our view remains bullish on Indian equities
but in the near term, there are signs of some exhaustion in the
equity rally after the ferocious rise seen over the past few
months," Amar Ambani, head institutional equities at Yes
Indian equities have outperformed their Asian peers strongly
this year as the economy reopened and vaccinations sped up, with
the Nifty and Sensex rising 24.6% and 22.2%, respectively,
during the period.
Ambani expects the Nifty to be "at much higher levels" in
2022 while saying that the market's current correction could
extend by another 5%.
Shares of most consumer goods majors, including Hindustan
Unilever, Dabur India and Godrej Consumer
Products, fell between 0.9% and 1.45%. The Nifty FMCG
Index dropped as much as 0.89%
Analysts have said rising commodity prices could be
increasing worries about margins of consumer goods companies.
The Indian arm of German engineering company Siemens
fell as much as 7.8% and was on track for its worst
day in 18 months after reporting a fall in quarterly profit.
The Nifty Energy Index continued its strong run
to climb 0.55%, boosted by a 3% rise in heavyweight Reliance
The conglomerate said on Wednesday it would transfer its
gasification assets to a unit.
IT stocks also bucked the broader trend, rising
0.88% on a 2% rise in MindTree Ltd.
Globally, stocks wobbled on a rising dollar after policy
makers said they were ready to speed up tapering of stimulus if
inflation stayed high.
(Reporting by Vishwadha Chander in Bengaluru; editing by