IT stocks drag India's benchmarks lower
The Nifty 50 fell 0.4% to 25,111.45, while the Sensex lost 0.45% to 82,259.24. The Nifty is down 0.15% so far this week.
The broader, more domestically focussed smallcaps and midcaps fell 0.1% and 0.2% respectively.
Citi downgraded Indian equities to 'neutral' from 'overweight', citing stretched valuations.
Asian markets were muted as uncertainty over the future of Fed Chair Powell raised concerns about US monetary policy and capital flows into emerging markets.
India's IT companies lost 1.4% on the day, making them the top sectoral losers. Tech Mahindra fell 2.8% after reporting a marginally lower-than-expected revenue a day earlier.
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