BENGALURU: Indian shares fell for a second straight session on Tuesday ahead of inflation data expected to build the case for an interest rate hike, with metals stocks leading the losses on concerns over demand.
The NSE Nifty 50 index closed down 0.82% at 17,530.30, while the S&P BSE Sensex dropped 0.66% to 58,576.37.
“Hyperinflation and risk of a policy rate hike are placing the global market on its toes and are impacting the performance of equities with a rise in yield,” said Vinod Nair, head of research at Geojit Financial Services.
“Inflation in India is also expected to be on the higher side in Q1, but it is expected to subside due to a reversal of commodity prices and improvement in supply.” A Reuters poll of economists estimated that India’s retail inflation likely sped up to a 16-month high of 6.35% in March, well above the Reserve Bank of India’s upper tolerance band for a third straight month.
The Nifty Metals index was the top drag among sectoral indexes, with aluminium producers Hindalco Industries and National Aluminium Co declining 5.9% and 3.5%, respectively.
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