D-Street indices retreat after hitting fresh all-time highs
Mumbai: Indian shares retreated Friday in anticipation that the US Federal Reserve will tighten policy even further to tame sticky inflation. India’s leading equity benchmarks fell nearly 1%, their biggest single-day drop since mid-April — after briefly touching fresh all-time highs in Friday’s trading — dragged down by heavyweight financials, technology, consumer staples and utilities. The Sensex declined 505.19 points or 0.77% to settle at 65,280.45.
The index made a fresh high of 65,898.98, beating Thursday’s high of 65,832.98. The Nifty topped 19,523.60 in the opening hour of Friday’s trading but closed at 19,331.80, down 165.50 points or 0.85% from the previous close. “I am surprised our markets have been complacent with the events happening globally,” said Andrew Holland, CEO, Avendus Alternate Strategies LLP.
“My concern is the US Fed will keep raising rates. But our markets look overbought at the moment after the recent rally and could see a correction.” Holland said depreciating currencies in China and Japan may further exacerbate worries of a global recession emanating from the West, and even if India’s fundamentals look strong, local shares may experience a bumpy ride on their journey to new highs. “There will be hiccups along the way,” Holland said.
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