BENGALURU: Indian shares closed lower on Tuesday, as risk-aversion gripped broader equities over hawkish comments from US Federal Reserve officials, and led to a decline in over-valued stocks such as the Adani Group.
The Nifty 50 index was down 1.03% at 17,914.15 at the close, while the S&P BSE Sensex fell 1.04% to 60,115.48.
“Weakness in the overall market had a bearing on Adani stocks, it is the risk aversion that is leading to more fall in stocks where valuations are high,” said Saurabh Jain, assistant vice-president, research, at SMC Global Securities.
Adani Group companies Adani Wilmar, Adani Power and Adani Enterprises fell between 2% and 5%.
San Francisco Fed President Mary Daly told the Wall Street Journal the policy rate will ultimately need to go to 5.00%-5.25% and stay there to bring inflation back down. Atlanta Fed President Raphael Bostic said his “base case” was for no rate cuts this year or next.
Investors will now focus on Fed Chair Jerome Powell’s speech at a panel discussion in Stockholm at 7:30 p.m. IST (1400 GMT).
The market will also keep a close eye on inflation data at home and in the US, both due on Thursday, to determine rate expectations.
Global shares dipped over worries about the Fed’s path of future rate hikes.
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