INDIA STOCKS-Indian shares drop 1% on earnings, Fed worries
Updates levels, adds analyst comments
BENGALURU, Jan 6 (Reuters) - Indian shares declined across the board on Friday, with investors ahead of the earnings season after recent warnings by some major companies and as strong U.S. data indicated the Federal Reserve could keep hiking rates.
The Nifty 50 index .NSEI was down 1.01% at 17,806.80 as of 1:35 p.m. IST. The S&P BSE Sensex .BSESN lost 1.07% to 59,708.24, falling below 60,000 the first time in over a week.
The two indexes have retreated for the third session in a row .
"The in the markets over the last few sessions is due to muted earnings expectations, like the kind we saw with Bajaj Finance and FMCG companies," said Aishvarya Dadheech, director and fund manager at Ambit Asset Management.
Earlier this week, shadow lender Bajaj Finance BJFN.NS reported , while Godrej Consumer Products GOCP.NS and Marico MRCO.NS had .
Overnight, U.S. data showed private employers hired more workers than expected in December, suggestingthat could allow the Fed to boost interest rates.
Investors are already about high rates slowing economic growth and that does bode well for Indian IT services companies, which get a large part of their revenue from the U.S. market.
IT stocks .NIFTYIT tumbled 1.7%, the most among the 13 major sectors, while the high-weightage financials .NIFTYFIN dropped 1.4%.
Forty-one of the Nifty 50 constituents fell, led by Tata Consultancy Services TCS.NS, which slid over 3%. TCS is scheduled to report results on Monday.
Indian markets' record high valuation premiums could spark a tactical shift to other emerging markets, said Milind Muchhala, executive director at Julius Baer India.
Although he said the drop could offer "several interim opportunities in the term".
($1 = 82.5680 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Savio D'Souza)