IGI Logo

India's shares fell on Monday, dragged down by information technology and energy companies, amid worsening COVID-19 infection numbers in China and likelihood of a tighter U.S. monetary policy.

The S&P BSE Sensex shed 0.8% to 61,156.80 as of 0642 GMT, while the NSE Nifty 50 index lost 0.8% to 18,162.80.

The Nifty IT, and Nifty energy indexes were top drags, falling 1.2% and 0.8%, respectively.

Markets were pressured by the COVID situation China, Anita Gandhi, director at Arihant Capital Markets said, adding although foreign investor inflows were positive, domestic institutions were taking profit.

"With the results season over, markets are focusing on valuation. We are a bit expensive compared to global as well as Asian peers," Gandhi said.

Foreign investors had purchased a net $3.71 billion worth of equities so far this month as of last week, compared with marginal withdrawals worth $0.52 million in October, Refinitiv data showed.

The MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.23%, as investors fretted about the economic fallout from fresh COVID-19 curbs in China. [MKTS/GLOB]

A string of hawkish messages from U.S. Federal Reserve officials have also fuelled fears of higher interest-rate induced economic slowdown.

Atlanta Fed President Raphael Bostic said on Saturday the central bank should guard against any temptation to cut rates before inflation is "well on track."

Meanwhile, Goldman Sachs expects India's economic growth to slow to 5.9% next year, from an estimated 6.9% in 2022, as the boost from the post-COVID reopening fades and monetary tightening weighs on domestic demand.

Among individual shares, Indian Energy Exchange rose most in nine months after the company said it will consider share buyback in a Nov. 25 meeting while steel stocks gained as government scrapped export tax on low-grade iron ore.