BENGALURU, June 6 (Reuters) - Indian shares ticked lower on
Monday as a slump in cement makers offset gains in metal stocks
at the start of a week where the central bank is expected to
deliver another interest rate hike.
The NSE Nifty 50 index closed 0.09% lower at
16,569.55 and the S&P BSE Sensex slipped 0.17% to
55,675.32, both falling for a second straight session.
The market has seen volatile moves in the past week as
worries build over stubbornly high inflation, with the Reserve
Bank of India expected to follow up its unscheduled rate hike in
May with another move at the policy meeting on
"There is nervousness in the market ahead of rate decision
amid pain of high inflation," said Saurabh Jain, assistant vice
president at SMC Securities.
"We are also seeing supersonic volatility and it is
difficult for market participants to make up their mind with so
many variables moving in both directions."
At the close on Monday, cement makers were among the top
drags. Shree Cement fell 3.4% to its lowest level in
more than one and a half years, while sector leader UltraTech
Cement dropped 1.8% to a 16-month low.
Shares of cement companies come under pressure as
competition in the sector heats up. Last week, UltraTech Cement
announced it would spend $1.66 billion to boost capacity to
stave off competition from the sector's newest entrant Adani
Beaten-down technology stocks settled 0.2% lower
after falling more than 2% earlier in the session.
Spicejet fell 2.7% to a 20-month low after it said
the country's aviation regulator had imposed a penalty on the
Limiting the losses, metal stocks on the Nifty index
rallied 1.12%. The gains were supported by a jump in
iron ore futures to a 10-month high on hopes of improving
Auto stocks closed 0.2% higher, boosted by a
4.2% rise in Bajaj Auto.
($1 = 77.4300 Indian rupees)
(Reporting by Chandini Monnappa in Bengaluru; Editing by
Shailesh Kuber and Aditya Soni)