India's NSE index fell more than 2 percent on Tuesday as market heavyweight Tata Motors slumped after posting weaker-than-expected earnings, and lenders such as ICICI Bank and HDFC Bank declined. The broader NSE index closed down 2.26 percent at 8,108.45, and ended below the 200-day moving average, typically a bearish technical signal for the near-term.
The benchmark BSE index ended 1.92 percent lower at 26,304.63.
While Tata Motors was one of the main decliners, ending down 9.84 percent, ICICI Bank and HDFC Bank dropped 2.4 percent and 1.65 percent, respectively. The Indian rupee fell against the dollar, hitting a level not seen since June 29, when it weakened in the aftermath of Britain's vote to leave the European Union. The greenback strengthened on expectations that President-elect Donald Trump's policies could boost inflation and guide US interest rates higher.
In India, sentiment continued to be weighed down by the government's move last week to withdraw higher-denomination bank notes and slow replenishment in new bills. "As a whole, the decline in markets have more to do with global factors like higher yields and a stronger dollar," said Neeraj Dewan, director at Quantum Securities, adding that India's action on bank notes was also impacting the market.
Meanwhile, key banking stocks slumped, with ICICI Bank falling 2.5 percent and Axis Bank down 2.1 percent. But, Bank of Baroda rose 9.4 percent, hitting its highest since September 8, after saying its September-quarter profit rose more than fourfold.
Comments
Comments are closed.