02-04-2024 04:46 PM | Source: Reuters
Indian shares muted as IT, financials weigh

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Indian shares were muted on Tuesday after hitting record highs in the previous session, as losses in information technology and financial stocks offset gains in metals stocks.

The blue-chip NSE Nifty 50 index slipped 0.04% to 22,453.30 at the close, while the BSE Sensex shed 0.15% to 73,903.91.

The benchmarks had hit record highs on Monday, led by metals stocks on strong industrial data from top consumer China.

"While there will be occasional bouts of profit booking near record high levels, the outlook for domestic markets remains positive," said Sanjeev Hota, head of research at Sharekhan.

"Domestic macroeconomic data remains strong and another season of strong quarterly earnings is on the cards," Hota said, after data showed that India's factory growth in March expanded at the fastest pace in 16 years.

U.S. rate-sensitive IT stocks fell 0.71%, after strong manufacturing data added to worries of a delay in rate cuts in the world's largest economy.

"Further delay in U.S. rate cuts could delay earnings recovery and weigh on IT stocks," said Sunny Agrawal, head of fundamental equity research at SBICaps Securities.

Financial services, the highest-weighted sub-index on the Nifty, shed 0.22% following three sessions ofgains. The rise was triggered by factors including the central bank easing norms on investments into alternative investment funds.

In contrast, metals extended gains, adding 1.5% after climbing 3.7% on Monday on the back of strong industrial data from top consumer China. [MET/L]

The more domestically-focussed small- and mid-caps rose about 1.20% each.

Mid-cap index stock Aditya Birla Fashion and Retail gained 10.56% on a plan to demerge Madura Fashion & Lifestyle into a separate listed entity.

Among Nifty 50 stocks, two-wheeler maker Bajaj Auto gained 2.59% after reporting a jump in total vehicle sales in March.

Hero MotoCorp shed 2.56% after posting drop in total sales in March.