shadow

Indian shares posted their second weekly loss on Friday, struggling to break past recent peaks as investors assessed a host of developments, including a cabinet reshuffle and results from software services giant Tata Consultancy Services.

Weighed down by heavyweight financial stocks, the blue-chip NSE Nifty 50 index ended 0.24% lower at 15,689.80, while the benchmark S&P BSE Sensex fell 0.35% to close at 52,386.19. For the week, the indexes shed about 0.2%

Since hitting record highs on the back of positive triggers such as declining COVID-19 cases, easing of restrictions and a surge in vaccinations, markets have struggled for momentum this week and the last.

Domestic events such as a cabinet rejig by prime minister Narendra Modi and the start of the first-quarter earnings season were unable to help the indexes break past their recent peaks.

Global developments have also hit sentiment. World markets have been roiled this week as a rise in cases of the Delta coronavirus variant have crimped risk appetite and raised concerns over the pace of the world’s economic recovery.

In Mumbai trading, the Nifty Bank Index fell 0.57% for its second day of losses, after a four-session streak of gains. Private-sector lender HDFC Bank was down 1.2% and was among the top percentage losers on the Nifty 50.

The Nifty IT index closed 0.30% lower, dragged down by TCS which lost 1.6% after its first-quarter revenue missed analysts’ estimates. Its smaller rivals Infosys and Wipro are set to report their results next week.

Investors will also be looking at the $1.25 billion initial public offering of food delivery startup Zomato next week, which is set to open for subscription on July 14. Demand for the offering is expected to be strong.

Leave a Reply

Your email address will not be published. Required fields are marked *