BENGALURU, June 8 (Reuters) - 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 closed down 0.07%
at 15,740.10, while the benchmark S&P BSE Sensex
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
"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.
"As the Nifty approaches the 16,000 mark, there is a bit of
buyer exhaustion, but sectoral rotation is keeping markets
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, mortgage lender HDFC and ICICI
Bank. The private-sector banks index,
which has added 7.28% this year, fell 0.98%.
Overall losses were limited, however, as the Indian
government on Monday pledged to provide free COVID-19 vaccines
to all adults, in an effort to rein in a pandemic that has
killed hundreds of thousands.
IT stocks extended gains to a fourth session and closed up
1.2%, boosted by a 1.7% rise in index heavyweight Infosys Ltd
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.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Devika