Indian shares snap 5-day rally on weak global cues, post weekly gain

·2-min read
The Bombay Stock Exchange building is seen from a facade in Mumbai

BENGALURU (Reuters) -Indian shares snapped a five-session rally on Friday, reflecting weak sentiment in global markets after hawkish comments from U.S. central bank policymakers, but notched their fourth straight weekly gain.

The blue-chip NSE Nifty 50 index closed down 0.01% at 18,255.75 while the benchmark S&P BSE Sensex ended 0.02% lower at 61,223.03.

Both indexes, however, have recovered nearly 10% since slipping into correction territory on Dec. 20, as investors looked past a sharp rise in COVID-19 cases to focus on December-quarter corporate earnings.

On Friday, stocks across the globe stumbled after U.S. Federal Reserve Governor Lael Brainard became the latest and most senior U.S. central banker to indicate hike interest rates would happen in March. [MKTS/GLOB]

"We are seeing a marginal cool-off in prices as we are mirroring moves from broader Asian markets," said Siddhartha Khemka, head of retail research at Motilal Oswal Securities in Mumbai.

In Mumbai, the Nifty auto index snapped two sessions of gains to settle 0.37% lower. India's auto industry body on Friday warned that the sector continued to face challenges due to semiconductor shortages.

The IT sub-index, ended 0.57% higher and clocked a weekly gain of 1.8%, with HCL Technologies adding 0.2% ahead of results.

The Nifty realty index closed up 1.15% and clocked its fourth straight weekly gain.

Among individual stocks, shares of Paytm snapped eight consecutive sessions of losses to close 8.4% higher at 1,118.60 rupees, still lower than the debut price of 1,950 rupees.

Shares of Asian Paints closed down 2.7% and private sector lender Axis Bank shed 2.6%, among the top percentage losers on the Nifty 50 index.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Shounak Dasgupta, Subhranshu Sahu and Ramakrishnan M.)

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