BENGALURU, June 8 (Reuters) - Indian shares retreated from
record highs on Tuesday, weighed down by losses in financials
and energy stocks, as investors grew uneasy about high
valuations and rising global inflation ahead of central bank
The blue-chip NSE Nifty 50 index fell 0.20% to
15,716.40 and the benchmark S&P BSE Sensex was down
0.18% at 52,243.87 by 0541 GMT.
The Nifty 50 has gained nearly 13% this year even as a
second COVID-19 wave battered the country and economists cut
growth projections, with investors focusing on a post-pandemic
"Markets are at slightly elevated valuations and seeing
routine profit taking due to global inflation worries," said
Anita Gandhi, director at Arihant Capital Markets.
Investors are awaiting U.S. inflation data due later this
week for clarity on tapering of policy support from the Federal
The European Central Bank is set to meet later this week
where it is not expected to announce any changes to policy.
Top private-sector lender HDFC Bank Ltd and
conglomerate Reliance Industries Ltd were among the
top drags to the Nifty 50 index, falling 1% and 0.8%,
The Nifty PSU Bank Index, which tracks
state-owned banks, fell 1.72% and the Nifty Bank Index
was down 1.04%.
Losses were capped, however, as the government pledged to
provide free COVID-19 vaccines to all adults, in an effort to
rein in a pandemic that has killed hundreds of thousands.
Heavyweight software companies Infosys Ltd and
Tata Consultancy Services Ltd gained 1.1% and 0.8%,
respectively, lifting the Nifty IT index by 1.41%.
Daily COVID-19 cases in India have been on a downward trend
since early May, with data from the health ministry on Tuesday
showing 86,498 infections in the last 24 hours, the lowest in 66
(Reporting by Rama Venkat in Bengaluru; Editing by Sriraj
Kalluvila and Devika Syamnath)