Indian stock benchmarks fell for a fourth session on Wednesday as investors looked to the US Federal Reserve for signs of a fading pace, while the recently launched Paytm fell. after the lockdown period for institutional investors expires.
The NSE Nifty 50 index was down 0.66 at 17,210 by 12:51 pm, with IT stocks leading the decline. S&P BSE Sensex fell 0.63% to 57,752.
Blue-chip indexes are down more than 7% from their record highs hit in October, but still outperform their Asian peers with a gain of more than 21% so far this year.
Investors are looking for clues as to when the Fed will stop buying assets and start raising interest rates, while the rapid spread of the Omicron coronavirus variant also affects sentiment.
“Fear of a ‘Powell Pivot’ and the pace of the Fed’s turnaround is palpable,” said independent market analyst Ajay Bodke. Comments on US rate hikes will be key. important because they can lead to cash outflows from countries with dual deficits like India, he added.
The Indian rupee fell 0.3% to 76.11 against the dollar, its weakest since June 2020.
The lack of public concern about the rapid spread of Omicron also increases the risk of crowding out the healthcare system, said Mr Bodke.
In Mumbai, the Nifty IT index fell 1.5%, with Tata Consulting Services down 1.8% to a one-week low.
Heavyweight shadow lenders Bajaj Finance and Bajaj Finserv slipped 2% and 1.2%, respectively.
One97 Communications, the parent company of digital payments company Paytm, fell 13% to its lowest level since November 22, following its dismal market debut on November 18.
Meanwhile, SpiceJet jumped as much as 3.4% after the low-cost airline said it had signed a settlement agreement with a Canadian plane maker.
