BENGALURU, Sept 11 (Askume) – Indian shares fell on Wednesday as investors booked profits ahead of key U.S. inflation data that could influence the size of the Fed’s potential rate cut next week.
The Nifty 50 index (.NSEI) fell 0.49% to 24,918.45, while the S&P BSE Sensex (.BSESN) fell 0.49% to 81,523.16.
Both benchmarks struggled to find direction throughout the session before profit-booking intensified in the last two hours of trade.
Kranti Bathini, director of equity strategy at Wealthmills Securities, said: “Profit taking hit a record high on the day as investors remained cautious ahead of US inflation data.”
US consumer price index (CPI) data, released after the Indian stock market close on Wednesday, is expected to show that inflation is gradually approaching the Federal Reserve’s 2% target, prompting the Federal Reserve to raise interest rates by 25 basis points next week.
Meanwhile, Brent crude futures fell to their lowest level since December 2021 on Tuesday as the domestic oil and gas sub-index (.NIFOILGAS) dropped nearly 2% due to growing concerns about weak global demand. Oil prices rose on the day but remained close to Tuesday’s low. [or]
Two analysts said while lower prices were generally positive for crude oil importers such as India, the sharp decline due to weak demand forecasts hurt the global economic outlook and investors should remain cautious ahead of the US inflation report.
Upstream oil company Oil & Natural Gas Corp (ONGC.NS) fell 3.5% after Nuwama said its profit would fall due to lower crude prices.
Except consumer stocks, all other major sectors declined.
Auto stocks (.NIFTYAUTO) fell 1.24% and Tata Motors (TAMO.NS) dropped 5.74% after UBS said its financials are weak and expected the Indian automaker’s value to fall 21% over the next 12 months.
