Economic news

Indian Shares Fall as Finance, Energy Sectors Drag

BENGALURU (Reuters) -Indian shares edged lower on Tuesday as losses in finance and energy sectors outweighed gains in tech and metal stocks, with heavyweight Reliance Industries falling more than 1.5% to weigh on the blue-chip Nifty 50 index.

The NSE Nifty 50 index slipped 0.2% to 18,072.55 and the benchmark S&P BSE Sensex fell 0.25% to 60,567.11 by 0438 GMT.

The Nifty Bank Index dropped 0.43%. The sub-index is facing stiff resistance at the 39,000-level, as per Gaurav Garg, head of research at Capitalvia Global Research.

Federal Bank, IDFC First Bank, and Kotak Mahindra Bank dropped between 0.60% and 1.05%.

Meanwhile, IDBI Capital’s Head of Research AK Prabhakar also highlighted that inflation is a worrying factor in India and the United States. “Many companies are looking to hike prices,” he said, adding that this could impact inflation and, therefore, the Reserve Bank of India’s policy.

Agricultural tractor-maker Escorts Ltd said on Monday a steady rise in commodity prices is “necessitating a price hike” of its tractors from Nov. 21.

Among energy stocks, NTPC Ltd and Adani Transmission shed 0.95% and 0.82%, respectively, while the Nifty Energy Index fell as much as 0.76%.

Tech stocks, however, were upbeat, led by gains in Coforge. The IT company jumped 6.87% to hit a one-month high after filing to list American depositary shares on the New York Stock Exchange.

Realty stocks were boosted by Macrotech Developers, up as much 4.7% after the Lodha Group-owner launched a share sale to institutional investors. The Nifty Realty Index rose 0.64%.

The Nifty Metal and Nifty Auto indexes jumped nearly 1% each.

Broader Asian shares gained as investors watched a key meeting between U.S. President Joe Biden and Chinese leader Xi Jinping. [MKTS/GLOB]

Reporting by Vishwadha Chander in Bengaluru; editing by Uttaresh.V

Source: Reuters

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