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Indian Shares Set to Snap 4Day Rally as Metals lose Lustre

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BENGALURU, May 11 Reuters Indian shares were on course to snap a foursession rally on Tuesday as metal stocks retreated from record highs and financials dipped, with sentiment taking a hit following declines in Asia on U.S. inflation worries.

The NSE Nifty 50 index fell 0.65 to 14,844.7 by 0432 GMT, while the SP BSE Sensex dropped 0.69 to 49,159.8.

Asian shares slipped following a weak close on Wall Street overnight, with U.S. inflation expectations surging to their highest in a decade as the economy reopens from pandemicinduced shutdowns.

Inflation worries seem to be real over the next few months and quarters in the U.S. context … the reaction is primarily on this count, said Mayuresh Joshi, head of equity research at William ONeil Co in India.

There are concerns of an earlierthananticipated stop to the liquidity push and of interest rate hikes happening gradually and earlier than anticipated.

Indias Nifty and Sensex have gained about 3 and 2.5, respectively, over the last four sessions, amid abundant liquidity and on pandemic relief measures.

On Tuesday, the Nifty Metal index dropped 3 after a commoditydriven fourday rally to record highs.

Nifty 50 components JSW Steel and Tata Steel slipped 3.2 each.

The Nifty Bank index slid 1.6, with top privatesector lender HDFC Bank declining 1.8.

Indigoowner Interglobe Aviation gained more than 2 after the company approved a 30 billion rupee 408.25 million fund raise.

Coal India was the top gainer in the Nifty 50,…

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