Indian shares ended lower for a seventh consecutive session on Monday, despite managing to cut some early losses on the back for firm cues from European markets.
Inflationary concerns weighed on sentiment after data on Friday showed U.S. consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased by the most in nearly two years last month amid a surge in wage gains.
The Fed’s preferred inflation gauge also accelerated, adding to markets fears the Fed will have to raise interest rates further and for an extended period.
The benchmark S&P/BSE Sensex hit an intraday low of 58,937.64 before seeing some recovery to end the session down 175.58 points, or 0.30 percent, at 59,288.35.
The broader Nifty index also cut early losses to settle 73.10 points, or 0.42 percent, lower at 17,392.70 amid strong buying in the financial sector.
Mid and small caps underperformed, with the BSE Midcap index and the Smallcap index finishing down 0.69 percent and 1.28 percent, respectively.
Adani Enterprises extended recent losses to close 9.7 percent lower while Infosys, Tata Steel, UPL and Bajaj Auto fell 3-5 percent.
Among those that gained, SBI, HDFC Life, Kotak Mahindra Bank, Power Grid Corp and ICICI Bank rose 1-2 percent.
Sensex, Nifty Extend Losses For Seventh Day On Fed Worries
2023-02-27 10:31:42
