Indian shares edge lower in choppy trade, IT drags
BENGALURU — Indian shares weakened slightly in volatile trade on Tuesday, as gains in autos and banks were offset by IT, with decline in Asian shares aiding fall.
The NSE Nifty 50 index was down 0.4% at 17,420.2 as of 0513 GMT, after having risen as much as 0.6% earlier in the session.
The S&P BSE Sensex fell 0.4% to 58,525.14.
The Nifty 50 index had risen 4.6% this month until Aug. 18, after which investors began to book profits. The index shed 2.6% in the last two sessions.
“The correction was very sharp in the last few days and this isn’t a trend reversal… Market is moving down,” said AK Prabhakar, head of research at IDBI Capital, adding that there was pressure on both ends with the derivative expiry on Thursday.
Sentiment was bearish, as Asian shares fell for a sixth straight session after a renewed spike in European energy prices stoked fears of recession.
Higher U.S. Treasury bond yields and slump in the euro to 20-year lows further pressured markets.
IT stocks weighed down stocks in India, with the Nifty IT index falling 1.7%.
Infosys Ltd fell 2% and was the top percentage loser on the Nifty 50 index.
A media report said the IT major had reduced average variable payout to 70% for the first quarter on margin pressure.
Nifty Energy index was down 1.2%.
Among gainers, the Nifty Auto index was up as much as 1.5%. Mahindra and Mahindra and Ashok Leyland were up 1.5% each. (Reporting by Tanvi Mehta in Bengaluru; Editing by Neha Arora)