Indian stocks slip as metals, banks falter; Nykaa soars in debut

Indian shares fell on Wednesday as metals and bank stocks weakened amid worries about higher inflation, while online fashion startup Nykaa surged in its market debut.

The blue chip NSE Nifty 50 index fell 0.51% to 17,952.45 and the benchmark S&P BSE Sensex was down 0.51% at 60,122.6 by 0506 GMT.

The Nifty Metal Index fell 2.2%, as Tata Steel , JSW Steel and Hindalco Industries lost between 2.9% and 3.6%.

Dalian iron ore futures hit a year's low, as demand worries intensified owing to China's curbs on its steel output and a worsening liquidity crisis in the country's property sector.

Adding to losses was state-run coal mining company Coal India shedding as much as 2.3%.

The Nifty Bank Index was down 0.88%, with lenders HDFC Ltd, ICICI Bank among the top percentage losers on the Nifty 50.

"The likelihood of higher inflation, not only in the United States and Europe but also in India is bound to affect interest rates and weigh on the markets," said Joseph Thomas, head of research at Emkay Wealth Management. He added several Indian mid-and small-cap firms are rate-sensitive as they are saddled with debt or have borrowing plans.

Risk sentiment in broader Asian markets was also down as surges in oil and Chinese factory prices added to worries of a hot U.S. inflation reading.

On the upside, Nykaa's parent firm made a blockbuster debut, valuing the Indian online beauty startup at nearly $13 billion.

Investors were also focused on fintech firm Paytm's initial public offering, expected to be India's biggest, that closes its subscription later on Wednesday. The IPO was subscribed 48% on the second day of the issue period.

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