Indian shares snap six-day rally as investors book gains in autos
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BENGALURU - Indian shares snapped a six-day rally on Tuesday, as investors locked in gains in high-flying automotive stocks following news of lower vehicle sales in January.
The NSE Nifty 50 index ended 0.04% lower at 15,109.30, having hit a record high earlier in the session. The S&P BSE Sensex also closed 0.04% lower at 51,329.08. Both indexes are still up nearly 11% so far this month.
Of the 14 sectoral indexes, autos fell the most, shedding 1.39%.
Automakers Mahindra and Mahindra and Tata Motors, which had climbed 6.3% and 7.3% respectively on Monday, fell more than 3% each and were among the biggest drags on the Nifty 50.
India's retail passenger vehicle sales in January slipped 4.5%, while overall auto sales fell 9.7%, the country's car dealers' association said on Tuesday, adding that a semiconductor supply shortage and "fading" pent-up demand was hurting the industry.
"The market has run up too fast and too big. Now, profit-booking is setting in, and it might continue for a few more days," said A.K. Prabhakar, head of research at IDBI Capital in Mumbai.
India's benchmark stock indexes have hit multiple all-time highs in recent sessions, as investors cheered last week's high-spending and growth-focused federal budget. Strong foreign inflows into equities and solid corporate earnings have also aided sentiment.
Future Group companies jumped nearly 10% after an Indian court overturned an order that had stalled the group's $3.4 billion deal to sell its retail assets to Reliance Industries.
Meanwhile, global stock markets climbed to a record high on Tuesday, following a record-setting day on Wall Street.
(Corrects typographical error in headline)
(Reporting by Sachin Ravikumar in Bengaluru; Editing by Vinay Dwivedi)
