BENGALURU: Indian shares were lower in early trading on Friday, dragged by IT after revenue forecasts of major tech firms underscored sustained challenges with deal wins in Europe.
The Nifty 50 index was down 0.24% at 17,815.35 as of 9:27 a.m. IST, while the S&P BSE Sensex declined 0.31% to 59,769.47.
Meanwhile, data that showed domestic and US inflation eased, capped some of the losses and boosted expectations that central banks could slow the pace of interest rate hikes.
India’s retail inflation for December came in below the Reserve Bank of India’s upper tolerance level of the 2%-6% band for the second consecutive month, easing concerns over larger rate hikes.
The RBI had raised key lending rate by 35 basis points last month, after three straight 50 bps hikes, and said its fight against inflation was not over yet.
In domestic trading, IT stocks were down 0.8%, as Infosys Ltd fell 0.3% after its revised revenue growth forecast disappointed investors. Infosys said on Thursday it expected revenue growth of 16% to 16.5% for the financial year to March, compared with the 15-16% growth it projected earlier.
Indian shares drop ahead of inflation data
HCLTech declined 1.9% and was the top percentage loser on the Nifty 50 after it narrowed its full-year revenue forecast, citing seasonal challenges. Like market leader Tata Consultancy Services, HCL also pointed to delays in deal decision-making in Europe.
Investors will now focus on IT firm Wipro Ltd’s earnings due later in the day.
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