BENGALURU, May 24 (Reuters) - Indian shares gave up early
gains to trade lower on Tuesday, weighed down by information
technology and consumer stocks, while logistics firm Delhivery
surged in its market debut.
The NSE Nifty 50 index fell 0.31% to 16,165.05 by
0525 GMT and the S&P BSE Sensex slipped 0.13% to
54,219.59, also tracking weakness in broader Asia.
"Markets are in a consolidation mode after a deep
correction," said Samrat Dasgupta, chief executive officer at
Esquire Capital Investment Advisors.
"Some of the overstretched valuations have normalised, so we
do not expect much downside from current levels. However,
inflation headwinds can play spoilsport for any market rally."
Indian shares have fallen 5% so far this month as global
equities have been under pressure from the Russia-Ukraine
conflict, prospects of bigger interest rate hikes to contain
surging inflation, and the supply chain crisis which has been
worsened by China's zero-COVID policy.
The Nifty IT and FMCG indexes were
the top decliners among sub-indexes on Tuesday, falling 1.5% and
Among individual stocks, textile-to-chemical maker Grasim
Industries dropped 4.6% and was the top percentage
decliner on the Nifty 50.
Shares of SoftBank Group-backed Delhivery rose as
much as 11.6% in their market debut.
Zomato surged 18.5% after the food delivery firm
late on Monday reported a 75% jump in quarterly revenue as new
customers propelled a surge in order volumes.
Drugmaker Shilpa Medicare jumped 11.4% after the
company late on Monday reported https://bit.ly/3yYDL5E a more
than three-fold surge in net profit for the March quarter.
Broader Asian stock markets slipped after a rally on Wall
Street was quickly soured by a slide in U.S. stock futures.
(Reporting by Rama Venkat in Bengaluru; editing by Uttaresh.V
and Subhranshu Sahu)