BENGALURU, April 13 (Reuters) - Indian shares closed lower
for a third consecutive session on Wednesday, hurt by financials
and auto stocks, while a red hot inflation reading for March
fueled expectations of a sooner-than-anticipated interest rate
The NSE Nifty 50 index closed 0.31% down at
17,475.65, and the S&P BSE Sensex declined 0.41% to
For the truncated week, due to market holidays on Thursday
and Friday, the indexes fell more than 1%.
"Macros are quite a concern. With rising yields, foreign
institutional investor flows are also negative. We are in to the
results season. There is cost inflation for several firms," said
Anita Gandhi, a whole-time director at Arihant Capital Markets
Refinitiv data showed foreign investors sold equities worth
$1.02 billion in the last four trading sessions.
Meanwhile, India's retail inflation rose nearly 7%
year-on-year in March, its highest in 17 months and above the
upper limit of the central bank's tolerance band for a third
"Sharply higher than expected March inflation reading
further increases the challenge for the MPC (Monetary Policy
Committee) ... We assign a very high probability of a 25 basis
points rate hike in the June policy along with a stance change,"
Kotak Mahindra Bank's Senior Economist Upasna Bhardwaj said.
The Nifty finance index, bank index
and auto index were down between 0.75% and 0.87%.
HDFC Ltd, HDFC Bank Bajaj Finserv
and automaker Maruti Suzuki were the top
percentage losers on the Nifty 50, falling more than 1% each.
(Reporting by Nallur Sethuraman, Rama Venkat in Bengaluru;
additional reporting by Gaurav Dogra; editing by Uttaresh.V and
Krishna Chandra Eluri)