India's Nifty 50 flirts with correction territory amid market slide
Updates at 1:36 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% to a session low of 23,632.05 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 0.9% to 77,998 as of 1:26 p.m. IST.
The bears are dominating, with the pessimistic outlook driven by rising U.S. bond yields and domestic inflation concerns, said Prashanth Tapse, senior vice president of research at Mehta Equities.
Fears of U.S. President-elect Trump's tariff plans, underwhelming economic stimulus from China, the worst corporate earnings in more than four years and foreign outflows of $14 billion in the last 32 sessions have all contributed to the decline.
Adding to that, 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.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza
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