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Indian shares drop as IT, financials weigh

Tuesday,   02-Apr-2024   11:49 AM (IST)

Indian shares fell marginally on Tuesday, weighed by weaker information technology stocks after U.S. data added to worries of a delay in interest rate cuts and a drop in financial services after a recent rally. The blue-chip NSE Nifty 50 index slipped 0.13% at 22,433.75 as of 10:26 a.m. IST, while the BSE Sensex shed 0.15% to 73,905.76. The benchmarks had hit record highs on Monday, led by metal stocks on strong industrial data from top consumer China. Financial services, the highest-weighted sub-index on the Nifty, shed 0.31% following three sessions of gains on the back of the Reserve Bank of India easing provision norms on investments into alternative investment funds. U.S. rate-sensitive IT stocks fell 0.5%, after manufacturing data signalled strength in the U.S. economy that could allow the Federal Reserve to delay rate cuts. Markets are pricing in a 62.1% chance of a 25 basis points rate cut in June. Meanwhile, the more domestically-focussed small and mid-caps were up about 0.5% each. Mid-cap index stock Aditya Birla Fashion and Retail gained 15% after the apparel retailer said it was planning to demerge Madura Fashion & Lifestyle, which contributes more than 70% of its total revenue, into a separate listed entity. Among Nifty 50 stocks, two-wheeler maker Bajaj Auto gained 2% after reporting a 25% annual jump in total vehicle sales in March. Adani Ports gained 2.25% after Citi reiterated "buy" on the stock and raised its target price to a Street-high 1,758 rupees from 1,564 rupees.