Indian blue-chip indices fell 1% each on Friday, pulled down by financial and IT firms, as robust U.S. inflation data this week dimmed Fed interest rate decreases.
The NSE Nifty 50 (.NSEI) and S&P BSE Sensex indexes lost weekly gains on Friday. Hotter-than-expected U.S. inflation data on Wednesday dashed rate-cut prospects, lowering Indian shares on Friday.
"The inflation data has definitely spurred worries over the timing of the Fed rate cut in 2024," said Anand Rathi Shares & Stock Brokers' head of fundamental analysis of investing services Narendra Solanki. Sources told CNBC-TV18 that a treaty between India and Mauritius will not have retrospective taxes effects because tax will be imposed after the agreement is signed.
Deven Choksey, managing director of DRChoksey FinServ, said this may have dragged on domestic markets on Friday. The top weekly sectors gainer was metal stocks (.NIFTYMET), opens new tab, up 2.90%.
The U.S. drug regulator's Dadra facility order caused Sun Pharma (SUN.NS) to decline 4.29% this week, dragging down pharma stocks (.NIPHARM).
The Nifty 50 (.NSEI) declined 1.03% to 22,519.40, while the S&P BSE Sensex (.BSESN) fell 1.06% to 74,244.90.
Indian IT giant Tata Consultancy Services (TCS.NS) climbed 0.42% before its quarterly reports. Just after closing bell, the business revealed fourth-quarter sales that missed projections.
March Indian consumer price inflation figures will take center stage. Numbers are expected later today.
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