Indian shares pause lower on lacklustre metals, Fed taper talk

BENGALURU, Aug 20 (Reuters) - Indian shares ended lower on Friday, dragged by metals, pharmaceuticals, and financials, while the likelihood of leisurely good purchase of monetary stimulus by the U.S. Federal Reserve extra dented investor sentiment.

The blue-chip NSE Nifty 50 index (.NSEI) ended 0.71% lower at 16,450.50, while the benchmark S&P BSE Sensex (.BSESN) closed 0.54% weaker at 55,329.32.

Investors grew to alter into to defensive client stocks in conjunction with Hindustan Unilever (HLL.NS) and Nestle (NEST.NS), both hit 52-week highs sooner than settling at 5.36% and 3.49%, respectively.

Earlier in the session, Hindustan Unilever's market tag crossed 6 trillion rupees for the first time, and ended the unreal at 6.16 trillion rupees. The Nifty FMCG index (.NIFTYFMCG) ended 2.27% less attackable.

A BofA diagnosis of market rallies urged the previous week's rally had shrimp runway and that a come-timeframe correction changed into as soon as anticipated.

"Peak valuations, Fed tapering talk, rise in U.S. yields and the greenback, consensus EPS cuts and muted IPO beneficial properties would possibly also act as unfavorable triggers," BofA analyst Amish Shah acknowledged in a expose.

Christopher Wood, the head of world equity technique at Jefferies, acknowledged to signal a "continuing structural bullish leer" on India, the brokerage would lengthen India's weightage in the company's model portfolio by two proportion parts with money shaved from China and Hong Kong.

"There's purely news for the economy ahead, with most Indian states lifting lockdowns to coincide with the festive season," Narendra Solanki, head of most crucial learn, investment services and products at Anand Rathi acknowledged.

The Nifty Steel index (.NIFTYMET) dropped 6.4%, pulled down by shares of Tata Steel, SAIL (SAIL.NS), Hindalco (HALC.NS), Jindal Steel (JNSP.NS) and NMDC (NMDC.NS) — all down between 5.4% and 9.5%.

Pharma stocks (.NIPHARM) ended 2.56% lower while the banking (.NSEBANK) index ended 1.4% weaker.

Auto-maker Eicher Motors (EICH.NS) fell as noteworthy as 2.64% sooner than closing 0.46% increased after shareholders voted down the reappointment of Managing Director Siddhartha Lal.

Global shares fell for the fifth straight day and the greenback remained company.

Reporting by Vishwadha Chander in Bengaluru; Editing by Uttaresh.V and Sherry Jacob-Phillips

Our Requirements: The Thomson Reuters Belief Strategies.

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