Monday, March 8

Indian shares trim weekly gains as HDFC Bank falls; Airtel jumps on MSCI review

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 Indian shares edged lower on Friday, dragged down by index heavyweights HDFC Bank and Housing Development Finance Corp, while Bharti Airtel jumped after MSCI Global Standard Indexes said it would review the weight of the telecom operator’s stock.

The blue-chip NSE Nifty 50 index fell 0.5% to 14,519, while the benchmark S&P BSE Sensex was down 0.36% at 49,407 by 0501 GMT.

The Nifty index was on track for a third consecutive weekly gain, while the Sensex was poised for its eleventh straight weekly gain. Both indexes are up over 1% so far this week.

Indian markets also mostly ignored the $1.9 trillion stimulus package proposal for the United States outlined by President-elect Joe Biden on Thursday.

“Most of the news are getting priced in as the run up has been pretty large over the past few weeks. We are trading at higher end of the range both in absolute price as well as valuations. Markets will now largely consolidate and there will be a lot of sectoral churn,” said Mayuresh Joshi, head of equity research at William O’Neil & Co in Mumbai.

“For sectors like IT, large move happened already and the Street was bullish on results, which were largely priced in. So, some money is being taken off the table. Only where the performance is more than expectations that particular stock will outperform.”

Infosys Ltd was down 1.3%, while HDFC Bank and Housing Development Finance Corp fell 1.8 and 1.3%, respectively, dragging down the Nifty 50 index.

The Nifty IT index, which gained 55% in 2020 and 10.3% in January, was down 0.7%. The Nifty bank index and the finance sub-index dropped 0.9%, each.

Bharti Airtel jumped 4% after the MSCI Global Standard Indexes said on Thursday it would review the weight of the stock in February.