Indian shares muted on U.S. rate hike worries, pharma stocks slide
Indian shares struggled for direction on Monday on worries that the U.S. Federal Reserve would keep interest rates higher for longer.
The Nifty 50 index was up 0.06% at 17,955.90 as of 10:40 a.m. IST, while the S&P BSE Sensex was higher by 0.17% at 61,116.34. The benchmarks swung between 0.4% gains and 0.3% losses during the session.
Seven of the 13 major sectoral indexes fell with pharma index losing nearly 1%. Cipla, the second highest weighted stock in the pharma index,
nearly 7%, to a near-seven-month low after the company’s Pithampur unit received eight observations from the U.S. drug regulator after inspection. The stock was the top Nifty 50 loser.
Beating the weak sentiment, Hindustan Unilever rose nearly 1% and was among the top Nifty 50 gainers after the FMCG major agreed to sell and divest brands in its foods business, including “Annapurna” and “Captain Cook.” Bharti Airtel rose over 2% after Goldman Sachs reiterated a “buy” rating on the stock and forecast a 15% annual revenue growth rate from this fiscal year through 2025.
The ongoing concerns over the future rate hiking path in the U.S. remained an overhang after official data showed a rise in export prices in January.
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