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Indian Shares Extend Falls to Fifth Day, Property Stocks Retreat

BENGALURU, June 9 (Reuters) - Indian shares extended losses to a fifth session on Thursday, as investors worried that aggressive policy tightening by central banks could stifle global economic growth.

The NSE Nifty 50 index was down 0.17% at 16,327.15, as of 0438 GMT, while the S&P BSE Sensex fell 0.19% to 54,790.26.

"We are mirroring global markets. As long as nothing decisive is happening there, we will continue to trade in a tight range and likely see more sector-specific moves, instead of major moves by benchmarks," said Ajit Mishra, vice president, research at Religare Broking.

Asian shares fell, with MSCI's broadest index of Asia-Pacific shares outside Japan slipping 0.39% ahead of a key meeting of the European Central Bank.

In a widely expected move on Wednesday, the Reserve Bank of India raised the repo rate by 50 basis points just a month after an unscheduled 40 basis point repo rate hike, signalling further tightening ahead to fight soaring inflation.

On Thursday, most major Nifty sub-indexes inched lower. Real estate stocks, which had risen nearly 2% in the previous session after the central bank allowed rural co-operative banks to lend towards residential housing projects, fell 1.4%.

Beaten-down technology stocks dropped 1.4% to their lowest in nearly two weeks.

However, losses in the benchmark indexes were capped by gains in energy stocks. The Nifty energy sub-index climbed 0.6% as crude prices advanced on robust China trade data.

Meanwhile, India's daily COVID-19 cases rose further, with government data released on Thursday showing daily cases rose 7,240 in the last 24 hours, the highest since March 2.

Reporting by Chandini Monnappa in Bengaluru; Editing by Shailesh Kuber and Subhranshu Sahu

Source: Reuters

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