Indian shares fall for second straight day as IT stocks drag

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Indian shares settled lower for a second straight session on Tuesday, pressured by losses in IT heavyweights, while sugar companies plunged on media reports that the world's biggest producer planned to curb sugar exports.

India planned to restrict sugar exports for the first time in six years to prevent a surge in domestic prices, a government source told Reuters on Tuesday.Domestic equities have fallen more than 5% so far this month as global equities have been under pressure from the Russia-Ukraine conflict, prospects of bigger interest rate hikes by central banks to contain surging inflation, and the supply chain crisis that has been worsened by China's zero-COVID policy.

"Markets are in a consolidation mode...some of the overstretched valuations have normalised, so we do not expect much downside from current levels. However, inflation headwinds can play spoilsport for any market rally," said Samrat Dasgupta, chief executive officer at Esquire Capital Investment Advisors.

 

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