Indian shares slump on rate hike worries; Wipro tumbles
Indian shares sank further on Thursday after the country's retail inflation data stoked fears of more rate hikes, while dismal results from Wipro weighed on IT stocks.
BENGALURU, Oct 13 (Reuters) - Indian shares sank further on Thursday after the country's retail inflation data stoked fears of more rate hikes, while dismal results from Wipro weighed on IT stocks.
The NSE Nifty 50 index fell 0.5% to 17,037.20 as of 0452 GMT, and the S&P BSE Sensex declined 0.53% to 57,320.50.
"I don't expect a rally or a fall because when going down it will get some support from banks and infrastructure companies and going up will be a problem as recession fears will keep a check on export-oriented stocks like IT," said Neeraj Dewan, director at Quantum Securities.
Meanwhile, data showed the country's annual retail inflation jumped to 7.41% last month as food prices surged, remaining above the Reserve Bank of India's target for three quarters.
IT major Wipro Ltd's shares fell 6.4% to hit a near two-year low, dragging the Nifty IT index 1% lower. The company forecast smaller sequential revenue growth for the December quarter.
HCL Tech Ltd was the sole bright spot among IT stocks, rising nearly 4% after the company raised its full-year revenue growth forecast and reported a 7.1% rise in September-quarter profit.
Wipro's bigger rival, Infosys Ltd, gave up early gains and was down 0.3% ahead of its quarterly results later in the day, when it may also announce a share buyback proposal.
Asian stocks tracked Wall Street lower on Thursday, while investors weighed the risks of global recession after minutes from the last Federal Reserve meeting showed policymakers agreed they needed to maintain a more restrictive policy stance.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7%.
Market participants now await U.S. consumer price data due later in the day.