Sensex falls for second session; Reliance, HDFC top drag
- By Reuters |
- Aug 02, 2018
- Last Updated at 12:32 IST
Indian shares fell on Thursday, dragged by financial and energy stocks a day after the Reserve Bank of India (RBI) raised its key policy rate, while escalating Sino-U.S. trade spat also weighed on investor sentiment.
The stock market has recently been on a record-setting spree, with the NSE and BSE indexes adding about 6 percent each last month.
"The market may consolidate 200 points below the record," said Sanjiv Bhasin, executive vice president, markets and corporate affairs at India Infoline.
"Expect Nifty to climb down to 11,200–11,250 in August because of profit-booking," he said.
However, local investors are bullish because of a revival in consumption and reductions in the Goods and Services Tax and Minimum Support Price for kharif crops.
"We should be looking at mid-cap stocks which I believe could see gains over the next few months," he said.
Domestic shares also tracked broader Asia which fell on renewed trade war fears after the U.S. administration on Wednesday increased pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.
The broader NSE Nifty was down 0.48 percent at 11,292.05 as of 0641 GMT, after snapping four straight sessions of gains in the previous session when the RBI raised interest rates for the second straight meeting.
The benchmark BSE Sensex was 0.50 percent lower at 37,335.82, extending falls into a second session following an eight-session winning streak.
Index heavyweight Reliance Industries Ltd fell 2 percent, while Housing Development and Finance Corp declined 1.4 percent.
Auto stocks also lost ground, with Maruti Suzuki India Ltd shedding 1.6 percent after the company posted a fall in July vehicle sales on Wednesday.
Oil and Natural Gas Ltd edged higher ahead of June-quarter results later in the day.
L&T Technology Services fell 4.1 percent after Larsen & Toubro Ltd offered to sell 4.1 million L&T Tech shares.
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