BENGALURU, Sept 13 (Askume) – Indian shares fell in early trade on Friday, with stocks slipping from their all-time highs after a sharp gain in the previous session, while consumer stocks also took a breather.
The Nifty 50 (.NSEI) fell 0.22% to 25,333.7 points and the Sensex (.BSESN) fell 0.21% to 82,793.93. It opened up around 0.15% but reversed direction later.
Aishwarya Dadhich, founder and chief investment officer, Fidient Asset Management, said: “As we saw massive inflows of mutual funds into the stock market earlier this week and the rush for the Bajaj Housing Finance IPO , all the liquidity will come into the market. The market, therefore, will remain bullish.
“But the prospect for further growth depends on the resilience of household incomes and whether the US economy slows in the face of interest rate cuts.”
Local stocks rose sharply on Thursday after reports that China would lower mortgage rates to stimulate consumption .This has led to an increase in commodity inventory.
The metal (.NIFTYMET) rose nearly 3% on Thursday, having gained 1.5% on the day, on expectations of stimulus measures from China .
But overall, 7 out of 13 industries suffered losses.
Consumer stocks (.NIFTYFMCG) declined 0.8%, giving up a breather from a 15% gain since July on hopes that a stabilising monsoon will revive demand and boost sales. The index has hit all-time highs in the past four sessions.
Broader, more domestically focused small-cap (.NIFSMCP100) and mid-cap (.NIFMDCP100) stocks gained around 0.6%.
Among stocks, Bharti Hexacom (BHAX.NS) rose 9.5% after Jefferies upgraded the stock to “buy” and said it was the best option for the telecom industry to withstand higher tariffs.
Patanjali Foods (PAFO.NS) shares fell 3% as its largest shareholder sold shares. (1 USD = 83.9460 Indian rupees)
