BENGALURU, June 2 (Reuters) - Indian shares slipped on
Wednesday, weighed down by financials and information technology
stocks, with investors also worried over high valuations
following a recent rally.
The blue-chip NSE Nifty 50 index fell 0.48% to
15,500.85 by 0503 GMT, while the benchmark S&P BSE Sensex
shed 0.64% to 51,597.22.
"In the medium term, the market should still be positive as
economic growth will pick up gradually with capex cycle picking
up. But, in the short term, there is a risk of a correction and
consolidation in the market as it has run ahead of valuations
and is expensive," said Neeraj Dewan, director at Quantum
The next upmove will be based on how the economy will be
opening up again with relaxations given to lockdowns, he said.
Software services firm Infosys Ltd and mortgage
lender HDFC Ltd were among the top drags to the Nifty
50, falling 1.4% and 1%, respectively. HDFC has risen in the
last six trading sessions out of eight.
Among other losers, cigarettes-to-hotels conglomerate ITC
Ltd fell 1.9% after its March-quarter profit slipped.
While the market's sentiment recently has remained upbeat
due to a steady decline in daily COVID-19 cases, several
economists have warned about the huge second coronavirus wave's
impact on the economic growth for the current quarter.
On Wednesday, the country reported 132,788 new cases of
COVID-19, well below the 200,000-mark for sixth day. Deaths rose
In Asian markets, shares edged up to near three-month highs
and global equities held steady near a record, as data showing
higher U.S. manufacturing activity in May cheered investors
looking for signs of a continued rebound in the world's largest
(Reporting by Rama Venkat in Bengaluru; editing by Uttaresh.V)