Indian shares end lower

Indian shares ended down in choppy trading on Friday as energy and pharma stocks fell amid geopolitical tensions over Ukraine and uncertainty over US Federal Reserve’s rate hike plans.

The NSE Nifty 50 index (.NSEI) fell 0.16 per cent to 17,276.30, while the S&P BSE Sensex (.BSESN) dipped 0.1 per cent to 57,832.97. Both the indexes recorded their second weekly decline, falling close to half a percent.

While increasing expectations for US Federal Reserve rate hike action have been plaguing the markets, the recent geopolitical standoff between Russia and Ukraine has further accentuated the uncertainty and led to a risk-off environment, said Milind Muchhala, executive director, Julius Baer, India.

“This elevated volatility can continue for a couple of months more, until the time we get some more clarity on the inflation trajectory and the Fed action.”

Analysts said persistent selling from foreign institutional investors (FII) has weighed down the market sentiment. FIIs have sold a net $6.41 billion in Indian equities so far this year, Refinitiv data showed, compared with net purchases of $5.82 billion in the same period last year

Shares of Ambuja Cements (ABUJ.NS) slumped nearly 6 per cent after a steep escalation in fuel prices cut its quarterly profit by half.

The Nifty energy index (.NIFTYENR) fell 0.9 per cent after gaining more than 3 per cent in the past few sessions, while the pharma index (.NIPHARM) dropped 0.87 per cent.