Indian shares fell for a third consecutive session on Friday to post a weekly loss, tracking weak global markets as caution prevailed about the possibility of an interest rate hike by the US Federal Reserve as early as June. The broader NSE index closed down 0.43 percent at 7,749.70, after rising as much as 0.37 percent earlier in the session. It lost 0.4 percent for the week.
The benchmark BSE index ended down 0.39 percent at 25,301.90. Sentiment has taken a beating this week over concerns that the US Federal Reserve would raise interest rates as early as June. Adding to these expectations, New York Fed President William Dudley - a permanent voting member of the central bank's rate-setting committee - said on Thursday the US economy could be strong enough to warrant a rate increase in June. "The market is a bit nervous about the possibility of a rate hike by the Fed next month. If global markets crack, then our markets will definitely follow suit," said Deven Choksey, managing director, KR Choksey Securities.
During midday trade, the broader NSE index was up 0.19 percent at 7,798.15 as of 0815 GMT, while the benchmark BSE index rose 0.21 percent to 25,452.89. ITC gained 1.5 percent ahead of its fourth-quarter results, which are expected later in the day. The tobacco company is expected to post a near 8 percent rise in sales while its cigarette volumes are seen flat. Among decliners, airline SpiceJet Ltd slumped 8.2 percent due to a one-time expense of 1.73 billion rupees.