BENGALURU, Jan 10 (Reuters) – Indian shares extended losses on Tuesday after hawkish comments from Federal Reserve officials and a warning from top IT services provider TCS, with auto stocks capping some of the fall on strong sales numbers from Jaguar Land Rover.
The Nifty 50 index (.NSEI) was down 0.83% to 17,950.55 as of 10:46 a.m. IST, while the S&P BSE Sensex (.BSESN) fell 0.92% at 60,190.05.
IT stocks profit that missed estimates. TCS was the top loser on the Nifty 50 index.
However, automobile stocks (.NIFTYAUTO), climbing 0.8%, helped cap some of the losses.
Jaguar Land Rover (JLR)-owner Tata Motors Ltd (TAMO.NS) jumped 6% and was the top gainer on the Nifty 50 index. JLR posted a 15% rise in wholesale volumes for the third quarter on strong demand and improved chip supplies.
While Federal Reserve Chair Jerome Powell is expected to say on Tuesday more time is needed to show inflation is under control, markets will wait to see inflation levels at home and in the U.S., making them key to determine rate expectations.
“Powell is unlikely to depart from the Fed’s hawkish stance but if the CPI data confirms the declining trend in inflation, the market will get ahead and start pricing in possible rate cuts by end 2023,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
India’s retail inflation held steady in December, staying within the Reserve Bank of India’s comfort zone for a second month, a Reuters poll of economists found. The data is due on Thursday after market closes. read more
In other Asian equities, the MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.42%.
Reporting by Rama Venkat in Bengaluru; Editing by Nivedita Bhattacharjee
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