India's Nifty 50 flirts with correction territory amid market slide
Updates at 2:23 p.m. IST
By Bharath Rajeswaran
Nov 13 (Reuters) -India's benchmark Nifty 50 threatened to end in correction territory on Wednesday amid a market slide as a spike in inflation dampened hopes of a rate cut next month, adding to concerns over dull earnings and sustained foreign outflows.
The NSE Nifty 50 .NSEI fell 1.1%to a session-lowof 23,616.40 points, which is 10% below the record high it hit on Sept. 27. If it ends the day at that level, it will signal a technical correction.
The BSE Sensex .BSESN was down 1% at 77,906 asof 2:23 p.m. IST.
"This sell-off could intensify further and it's just a matter of time before we go bit deeper into correction," said Saurabh Jain, assistant vice president of research of retail equities at SMC Global Securities.
"Indian markets were priced to perfection and a lacklustre earnings season has added to nervousness among investors and failed to sustain the hype in terms of valuations."
"Add to that, the relentless foreign selling, rising domestic inflationary concerns and uncertainty over the implications of a Trump regime in the U.S.for emerging markets, the picture looks grim," Jain said.
Meanwhile, data on Tuesday showed India's retail inflation spiked to a 14-month high in October, dashing hopes of an interest rate cut in December and adding to fears of a consumption slowdown.
All the 13 major sectors declined on the day. The broader, more domestically-focused small- .NIFSMCP100 and mid-caps .NIFMDCP100 lost 2.4% and 2.1%, respectively.
"Despite the 6% drop in benchmarks in October, segments in broader markets have not corrected enough, and valuation concerns remain, lending scope for near-term pressure," said Pratik Oswal, chief of passive business at Motilal Oswal Asset Management Company.
Since the start of 2023, the Nifty 50 has gained 30% while small- and mid-caps have outperformed, rising about 80% and 70%, respectively, aided by steady inflows from domestic retail and mutual fund investors.
India's Nifty drops 10% from all-time high levels hit on Sept. 27 https://reut.rs/3CmpuDw
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza
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