BENGALURU, May 24 Indian shares reversed early gains on Friday after hitting record highs for the second consecutive session. IT stocks fell due to concerns that strong U.S. economic data indicates the Federal Reserve might delay rate cuts.
As of 10:20 a.m. IST, the blue-chip NSE Nifty 50 (.NSEI) was down 0.16% at 22,930.80 points, and the S&P BSE Sensex (.BSESN) shed 0.15% to 75,307.49 points.
Eight of the 13 major sectors experienced losses. The IT sector, sensitive to U.S. rate changes, dropped 0.4% following robust labor market and business activity data from the U.S., which fueled fears of prolonged tight monetary policy. IT companies earn a significant portion of their revenue from the U.S.
On Thursday, Indian benchmarks closed at all-time high levels and posted their best session since March 1, driven by the Reserve Bank of India’s record dividend to the government, which boosted financial stocks.
Both the Nifty 50 and Sensex rose about 0.1% in early trade on Friday, reaching record highs before erasing the gains.
While some profit-taking at record high levels was expected, the overall momentum for Indian markets remains positive, noted market analyst Khemka.
In corporate news, Honasa Consumer (HONA.NS), the parent company of Mamaearth, jumped 3% after reporting a fourth-quarter profit. Drug maker Biocon (BION.NS) gained 4%, reaching a 22-month high after signing a licensing and supply deal with South Korean firm Handok.
Financial services (.NIFTYFIN) edged up 0.1%, while state-owned lenders (.NIFTYPSU) gained 0.5%.
