Indian shares erase gains as financials, metals weigh
Indian shares pared gains on Friday mirroring financials, while a slide in metal stocks and fears of aggressive interest rate hikes by global central banks weighed on sentiment.
The Nifty 50 index (.NSEI) fell 0.02% to 17,508.15, while the S&P BSE Sensex (.BSESN) edged 0.04% higher to 59,632.17 as of 11:11 a.m. IST. Both the benchmarks traded between 0.6% gains and 0.1% losses.
The benchmark mirrored high-weightage financials (.NIFTYFIN) which fell 0.05%. Nine of the 13 sectoral indexes advanced.
Metal stocks (.NIFTYMET) tumbled over 2% with 11 of the 15 constituents logging losses.
“Metals are under pressure due to a rise in the dollar index as commodities have an inverse proportionality to dollar,” said Astha Jain, senior research analyst at Hem Securities.
The dollar index, which measures the safe-haven greenback against six peers, hovered near a two-month high of 104.78.
Wall Street equities ended in positive territory overnight, with the S&P 500 snapping a four-session losing streak, even as weekly jobs data underscored the strength of the U.S. economy and heightened chances of the Federal Reserve continuing with its tight monetary policy stance.
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