BENGALURU, Oct 21 (Reuters) - Indian shares slipped on
Thursday, as technology stocks fell on fears of steep
valuations, outweighing gains in energy stocks.
The NSE Nifty 50 index was down 0.7% at 18,134,
while the S&P BSE Sensex fell 0.8% to 60,770 by 0551
The Nifty IT index was the top drag among the
sectoral indexes, falling 2%.
"Certain pockets, where valuations have become lofty and
have seen frenzy buying in small and midcap indexes, are seeing
a correction," said Saurabh Jain, assistant vice president of
research at SMC Global Securities.
The Nifty mid-cap index was down 1.1%, while
the small cap index dropped 0.7%.
"Largely, IT companies have reported good set of numbers.
But the valuations are rich in the sector and there is a good
amount of room for correction."
Refinitiv Eikon data showed that the Nifty trades at a
price-to-earnings ratio of 22.8 times forward earnings
"Sustained selling by institutional investors indicate that
smart money regards the market as overheated and over-valued,"
said V K Vijayakumar, Chief Investment Strategist at Geojit
Data from Refinitiv also showed that domestic institutional
investors sold $1.03 billion worth of securities in Indian
capital markets in the past one week.
Among shares, oil explorer Oil and Natural Gas Corp
rose 1.8%, Indian Oil Corp gained 2.9%,
Bharat Petroleum Corp was up 1.5% and Hindustan
Petroleum Corp rose 3.7%.
Future Retail fell 4% after a Singapore
arbitration panel ruled that the retailer must take part in
arbitration over a commercial dispute with Amazon.com Inc
Department store chain Shoppers Stop rose as much
as 15.1% on a smaller loss in the September quarter.
Havells India dropped as much as 9.6% after it
posted a fall in quarterly profit.
Investors now eye September-quarter results from a slew of
companies, including Asian Paints, JSW Steel
, TVS Motor Co and Biocon.
(Reporting by Nallur Sethuraman and Gaurav Dogra in Bengaluru;
editing by Uttaresh.V)