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Indian Shares Fall on Lack of Positive Triggers

BENGALURU (Reuters) - Indian shares closed lower on Thursday dragged by losses across sectors, while investors waited for the earnings season to kick off with Tata Consultancy Services’ results.

The blue-chip NSE Nifty 50 index ended 0.96% lower at 15,727.90, while the benchmark S&P BSE Sensex closed 0.92% lower at 52,568.94.

Markets have retreated from the near record levels touched earlier this week amid choppy trading as investors locked in gains ahead of Thursday’s expiry of weekly contracts.

A fall in global markets which were tracking a slump in Asia amid a widening crackdown on the tech sector in China also dampened sentiment, while oil prices also sagged on supply uncertainty. [MKTS/GLOB]

The India volatility index, an indicator of expectations for near-term market volatility, rose 11.03% to end at 13.56, its highest closing level in two weeks.

“Currently, there are more of negatives than positives in the market...crude oil prices are at highest levels, dollar is getting stronger and we are witnessing delay in monsoon”, said Rahul Sharma, market strategist and head of research at Equity99 markets

“Global markets after a good long rally are resting now and shall remain in consolidation range & volatile in short term”, Sharma added.

Investors are expecting a robust June-quarter earnings from software services heavyweight Tata Consultancy. The Nifty IT index was the only major sub-index to close in positive territory

The Nifty Auto index and the Nifty Bank index were among the top losers on Thursday, falling 0.91% and 1.39%, respectively.

Indian Prime Minister Narendra Modi appointed new federal ministers for health, IT and oil on Wednesday as part of a reshuffle amid criticism of the government’s handling of the COVID-19 pandemic.

Reporting by Shivani Singh and Sethuraman N R in Bengaluru; editing by Krishna Chandra Eluri

Source: Reuters

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