Benchmark Indices Snap Six-Day Rally As Reliance, Autos Drop
The NSE Nifty 50 index fell 0.53 per cent to 16,631, while the S&P BSE Sensex slipped a tad more to 55,766.22, after rising for six straight sessions
Indian shares broke their longest gaining streak since last October on Monday, as automakers slid and index heavyweight Reliance Industries dragged after its earnings fell short of expectations. The NSE Nifty 50 index fell 0.53 per cent to 16,631, while the S&P BSE Sensex slipped a tad more to 55,766.22, after rising for six straight sessions. Last week, the indexes rose more than 4 per cent each in their best performances since February 2021 amid expectations that inflation had peaked, even as markets across the globe geared up for central banks to deliver more rate hikes.
The U.S. Federal Reserve is expected to raise interest rates by another 75 basis points later this week as it looks to tackle stubbornly high inflation, while India’s central bank will meet next week to set the policy roadmap. India’s most valuable company Reliance fell 3.3 per cent on its worst day since July 1, after its first-quarter profit missed estimates due to surge in costs. Shares of food delivery firm Zomato plunged 11.3 per cent to a record low as a one-year lock-in period for promoters, employees and other investors came to an end following a blockbuster listing last year.
The Nifty Auto index, which had jumped 8 per cent this month up to Friday’s close, slid 1.7 per cent, led by a fall in Mahindra and Mahindra and top carmaker Maruti Suzuki. Ahead of quarterly results, Nifty 50 component Tata Steel added 2.6 per cent, Axis Bank slipped 0.5 per cent, while Tech Mahindra lost 1.1 per cent. The Nifty Metal index was a bright spot among the sub-indexes, climbing 1.5 per cent to its highest since June 10.