Indian shares gave up early gains to finish marginally lower on Friday despite positive global cues amid bets that the Federal Reserve will slow the pace of rate hikes in the coming months.
Closer home, India’s service sector grew at the fastest pace in more than 11 years in May, underpinned by a strong growth in demand following the reopening of the economy after the COVID-19 lockdowns, survey results from S&P Global showed.
The benchmark S&P BSE Sensex hit as high 56,432.65 before giving up all gains to end the session down 48.88 points, or 0.09 percent, at 55,769.23.
The broader Nifty index slipped 43.70 points, or 0.26 percent, to 16,584.30 after a highly volatile trading session.
Automakers and commodity-related stocks were hit hard, with Maruti Suzuki India, Hero MotoCorp, Shree Cement, UltraTech Cement and Grasim falling 3-7 percent. Shares of cement firms led losses on the back of UltraTech’s capacity expansion announcement.
Reliance Industries shares rallied 2 percent to extend gains from the previous session amid reports that RIL and U.S.-based Apollo Global Management are teaming to bid for Boots — the international chemist and drugstore unit of Walsgreen Boots Alliance.
U.S. jobs data is due later in the day and it is believed that weak data could sway the Fed towards a less aggressive policy path.
Market Analysis
Sensex, Nifty End Volatile Session Marginally Lower
2022-06-03 10:27:43
