Indian shares ended lower on Wednesday, retreating from a record high hit in early trade, led by losses in IT stocks and financials. The nation's central bank cut its main policy rate by 25 basis points to a more than 6-1/2-year low, saying a lower inflation rate opened room for monetary easing. The broader NSE index closed down 0.33 percent at 10,081.50, while the benchmark BSE index ended 0.30 percent lower at 32,476.74. Both indexes ended at record closing highs in the last two sessions.
The Reserve Bank of India will likely cut its main policy rate by 25 bps to a more than 6-1/2 year low after inflation slumped, sparking pressure from the government and others to ease rates further. Markets are at higher levels and valuations seem a little steep index-wise, so a little profit-booking is likely in mid-cap stocks, said Siddharth Sedani, head and vice president, equity advisory at Anand Rathi. "A little bit of consolidation can be seen in the markets once the policy meet is done," he added.
Early gains were reversed as investors booked profits in stocks such as Hindalco and Vedanta Ltd, down as much as 1.4 percent each, after two consecutive sessions of gains. Bajaj Auto Ltd was down as much as 1.3 percent after reporting a 6.7 percent fall in total sales for July. Meanwhile, Hero MotoCorp Ltd led gains, rising as much as 3 percent to its highest since June 20 after the two-wheeler maker on Tuesday reported a 17.1 percent jump in July sales.
Comments
Comments are closed.