Indian shares end 4-day rally

Indian shares snapped a four-session rally on Tuesday as financial and IT stocks slid amid worries that a potential acceleration in US inflation could lead to foreign fund outflows from the region.

The NSE Nifty 50 index fell 0.61% to 14,850.75, while the S&P BSE Sensex slid 0.69% to 49,161.81.

This comes even as the Reserve Bank of India is expected to maintain status quo on rates as inflation is likely to remain within its target.

Over the last four sessions, India’s Nifty and Sensex had gained about 3% and 2.5%, respectively, even as domestic coronavirus cases surged.

Shares of lenders accounted for most of the losses on the benchmark Nifty on Tuesday. The Nifty Bank index fell 0.8%, with top private-sector lender HDFC Bank declining 1.2%.

The Nifty Metal index dropped 0.9% after a commodity-driven four-day rally to record highs, while IT majors Infosys and Tata Consultancy Services slipped 0.7% each.

State-run firms Coal India, NTPC, Indian Oil Corp and GAIL were among the top gainers in the Nifty 50, rising 4.6%-5.9%.