Indian shares slip on caution overvaluations, hawkish central banks

Indian stocks closed lower on Thursday as investors turned wary of higher valuations with benchmark indexes at near record highs, while fears of prolonged tightening from global central banks dampened sentiment.

30 stocks Sensex It rose as much as 0.12% to a new record high of 63,601.71 in pre-opening trade, before reversing the gains.

It closed down by 0.45% at 63,238.89, while 50 stocks closed Nifty 50 It fell 0.45 percent to 18,771.25 points.

the elegant It came within one point of its all-time high during the session. The broader medium and small capital indices lost 1.06% and 0.76%, respectively.

Indices have risen recently on strong domestic growth data, slowing inflation, foreign inflows and healthy corporate earnings, but the gains have raised valuation concerns.

“The risk-reward ratio for traders is negative because we are at the upper end of the market, both in terms of technicals and valuations,” said Amit Kumar Gupta, founder of Fintric Capital.

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“It is recommended for short-term investors to take some profits from the broader markets.”

11 out of 13 major sector indices declined.

Heavyweight Reliance Industries fell more than 1%, sending the energy index down 1%.

US Federal Reserve Chairman Jerome Powell reiterated the possibility of two increases of 25 basis points this year.

The Bank of England is expected to raise interest rates by a quarter or half a point to tackle inflation in its monetary policy decision due later in the day.

Information technology stocks, which get a large share of their revenue from the United States, fell on Thursday.

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Morgan Stanley said the near-term outlook for IT companies remains challenging and warned of lower revenues in the June quarter.

Meanwhile, Fitch Ratings raised its growth forecast for the Indian economy to 6.3% for the current fiscal year from 6% earlier.