INDIA STOCKS-Indian shares decline on U.S. recession worries, hawkish Fed

By Rama Venkat

BENGALURU, Jan 19 (Reuters)Indian stocks were trading lower on Thursday after two straight sessions of gains, as weak U.S. economic data and hawkish comments from the U.S. Federal Reserve weighed on sentiment.

The Nifty 50 index .NSEI was down 0.31% at 18,108.85 as of 10:45 a.m. IST, while the S&P BSE Sensex .BSESN declined 0.27% to 60,878.62.

“When data indicates a possible recession, U.S. markets go down and all other markets are impacted.”

U.S. data showed retail sales fell the most in a year in December, while manufacturing output recorded its biggest drop in nearly two years.

Fed policymakers on Wednesday signalled they will push on with more interest rate hikes, even as inflation shows signs of having peaked and economic activity is slowing.

“Metals have benefited on hopes of demand recovery from China, re-opening its borders, and now we are seeing some profit booking in the sector,” said Siddhartha Khemka, head of research (retail) at Motilal Oswal Financial Services.

Hindustan Unilever Ltd HLL.NS and Asian Paints ASPN.NS were down 1% and 0.4% higher, respectively, ahead of their quarterly earnings results later in the day. Investors will look for commentary on the impact of inflation on demand.

Private lender IndusInd Bank INBK.NS rose 1.8% after it reported a bigger-than-expected jump in third-quarter profit on Wednesday.

($1 = 81.4400 Indian rupees)

(Reporting by Rama Venkat and Bharath Rajeswaran in Bengaluru; Editing by Nivedita Bhattacharjee )


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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