Indian shares break five-day rally

Indian shares halted their five-day rally on Tuesday, amid concerns that global economic growth was weakening and as investors booked profits after five straight days of gains.

The losses came as investors awaited the two-day Federal Reserve meeting that begins Tuesday. The US central bank is widely expected to raise interest rates, which would be its fourth hike this year.

Following a week of disappointing economic data from China and Europe, US and European shares were hammered on Monday after a poor holiday outlook from major online retailer ASOS and US data that suggested home-builder sentiment had sunk to multi-year lows, reports Reuters.

India’s NSE Nifty fell 0.42 per cent to 10,842.85 by 0634 GMT on Tuesday, while the benchmark BSE Sensex was 0.43 per cent lower at 36,118.42.

Each index had gained 3.8 per cent in the previous five sessions.

Financials and IT stocks mostly fell, with Infosys Ltd and HDFC Bank Ltd among the top laggards on the Nifty. Zee Entertainment Enterprises Ltd was the top decliner with a 5.2 per cent slide.

However, IL&FS group companies—IL&FS Engineering and Construction Co Ltd, IL&FS Transportation Networks Ltd and IL&FS Investment Managers Ltd—rose between 4.8 per cent and 9.3 per cent.