Indian shares fall on profit taking after Nifty 50 scales record high

Friday,   03-May-2024   04:21 PM (IST)

Indian shares dropped as profit booking emerged after the Nifty 50 scaled a record high, trimming weekly gains for the blue-chip indexes. The blue-chip Nifty 50 fell 0.8% and Sensex dropped 1% on the day, dragged by information technology stocks. The Nifty 50 rose about 0.6% to a peak earlier in the session. The benchmarks added about 0.25% each this week, their second consecutive weekly rise. Indian markets underperformed other Asian peers on the day. The Nifty volatility index rose to a two-month high at close. High weightage financials gained more than 2%, led by non-bank lender Bajaj Finance, which jumped 3% after the central bank lifted a five-month ban on some of its lending products. IT stocks dropped 2.25%, dragged by an 8.5% decline in HCL Technologies after the software services company missed March quarter revenue estimates, making it this week's top loser on the Nifty 50 index. Expectations of higher-for-longer U.S. interest rates have been weighing on India's IT sector, as elevated rates have resulted in lower client spending the U.S., a key market. Auto stocks gained about 2%, supported by strong monthly sales from Mahindra & Mahindra and Bajaj Auto. Mahindra & Mahindra rose about 7% and was the top percentage gainer on the Nifty 50.