BENGALURU, Dec 19 (Reuters) - India's benchmark Nifty fell on Tuesday, dragged by financials and information technology, while a global rally fuelled by hopes of U.S. interest rate cuts showed signs of slowing down.
The NSE Nifty 50 index lost 0.21% to 21,374.05 points, while the S&P BSE Sensex shed 0.21% to 71,168.73, as of 10:02 a.m. IST.
Financials and information technology lost 0.5% and 1.25%, respectively. The two sectors account for 49% weightage in the Nifty 50 index.
Energy, the third-heaviest sector, rose 0.5%, after the government cut a windfall tax on petroleum crude and diesel.
Oil & Natural Gas Corporation gained 1.5% and was among the top Nifty 50 gainers.
Oil India, Mangalore Refinery and Petrochemicals and Chennai Petroleum Corporation climbed between 2.5% and 6%.
So far in December, the Nifty has risen about 6.4%, and is on course for its best month since July 2022.
The rise has been supported by strong domestic macroeconomic data, moderation in oil prices, sustained inflows from mutual fund investors, record fortnightly foreign purchases and the improving U.S. interest rate outlook.
"As we approach the year-end, markets usually get into a narrow range," said analysts at Centrum Institutional Research, adding that the benchmark Nifty could see some consolidation this week.
Asian markets were subdued after the Bank of Japan left its outlook and ultra-easy monetary policy unchanged.
Wall Street equities closed marginally higher overnight, while U.S. Treasury yields rose as more Federal Reserve officials pushed back against market bets on rate cuts.
Among individual stocks, Devyani International jumped 6% after it entered the Thailand market with a $129 million deal.
"The deal would add 35%-40% to Devyani's consolidated revenues and EBITDA," said analysts at Jefferies.
Zee Entertainment Enterprises lost 4% after Sony Pictures Networks India said it has not agreed to a merger deadline extension.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun H K, Janane Venkatraman and Sonia Cheema)
