Indian shares fall for fifth session as financials, Reliance weigh

By Chandini Monnappa

BENGALURU (Reuters) – Indian shares extended losses to a fifth session on Monday, dragged down by index heavyweight and financials as investors sold off recent high-flying stocks.

Equities in India rose sharply in the first two weeks of February, driven by solid corporate earnings, a well-received federal budget and strong foreign fund inflows.

However, have pared some of the gains since last week as concerns grew that valuation in certain cases are stretched, and some investors locked in profits in recent winners.

The NSE Nifty 50 index was down 0.68% to 14,880.75 by 0454 GMT, while the S&P Sensex was 0.85% lower at 50,446.43.

“We’ve seen a correction in the market in the last few sessions. Some people still want to book profits because they are scared of the ongoing correction,” said Neeraj Dewan, director at New Delhi-based Quantum Securities.

He added rising U.S. bond yields had spooked investors that money might move away from emerging

Broader Asian stock were mixed as expectations for faster economic growth and inflation globally battered bonds and boosted commodities.

In Mumbai, state-run banks extended losses after snapping a five-session winning streak last week, slipping 2.2%, and were the top decliners among 14 sectoral indexes. Still, the index is up around 35% in February.

On the Nifty 50, mortgage lender HDFC and conglomerates and ITC were the top three drags, falling between 1.5% and 4%.

Meanwhile, the Nifty metal index was the only sub-index in positive territory, adding as much as 3.2% amid a rise in copper prices driven by hopes of a pick-up in demand.[MET/L]

Shares of Jubilant FoodWorks, which operates Domino’s Pizza and Dunkin’ Donut outlets in India, rose 4.2% to a record high after it said it would buy a Dutch restaurant operator.


(Reporting by Chandini Monnappa in Bengaluru; Editing by Subhranshu Sahu)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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