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Indian shares fall for second session as cement makers slump

BENGALURU: Indian shares ticked lower on Monday as a slump in cement makers offset gains in metal stocks at the start of a week where the central bank is expected to deliver another interest rate hike.

The NSE Nifty 50 index closed 0.09% lower at 16,569.55 and the S&P BSE Sensex slipped 0.17% to 55,675.32, both falling for a second straight session.

The market has seen volatile moves in the past week as worries build over stubbornly high inflation, with the Reserve Bank of India expected to follow up its unscheduled rate hike in May with another move at the policy meeting on Wednesday.

“There is nervousness in the market ahead of rate decision amid pain of high inflation,” said Saurabh Jain, assistant vice president at SMC Securities.

“We are also seeing supersonic volatility and it is difficult for market participants to make up their mind with so many variables moving in both directions.” At the close on Monday, cement makers were among the top drags. Shree Cement fell 3.4% to its lowest level in more than one and a half years, while sector leader UltraTech Cement dropped 1.8% to a 16-month low.

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