Indian shares follow Asia lower as U.S. inflation worries rise

Tuesday,   11-May-2021   09:50 AM (IST)

Indian shares fell on Tuesday after four straight sessions of gains, dragged down by losses in financial and metal stocks, as Asian peers retreated on worries that accelerating U.S. inflation could lead to interest rate hikes sooner than expected. The NSE Nifty 50 index fell 0.91% to 14,806.65 by 0351 GMT, while the S&P BSE Sensex  dropped 0.91% to 49,051.58. The blue-chip indexes have gained around 3% and 2.5%, respectively, over the last four sessions. Asian shares dipped on Tuesday following a weak close on Wall Street overnight as U.S. inflation expectations surged to their highest in a decade as the economy reopens from COVID-19-related shutdowns. In Mumbai, the Nifty Bank index slid 1.6%, with top private-sector lender HDFC Bank declining 1.8%, while the Nifty Metal index dropped 3% after a four-day rally to record highs. Meanwhile, with coronavirus infections and deaths holding close to record daily highs as of Monday, calls have increased for a national lockdown. The World Health Organization has classified the virus variant first identified in India last year as a variant of global concern.