Indian shares fell more than 1 percent for a second straight session on Tuesday, as markets globally braced for a potential escalation in the Sino-US trade dispute, while the rupee continued its downward spiral touching a fresh life-low. China will ask the World Trade Organization next week for permission to impose sanctions on the United States, for Washington's non-compliance with a ruling in a dispute over US dumping duties that China initiated in 2013, a meeting agenda showed on Tuesday.
The broader NSE index ended down 1.32 percent to 11,287.50, while the benchmark BSE index was down 1.34 percent at 37,413.13. Both indexes marked their worst closing levels since Aug. 2.
Financials and consumer stocks were top drags on the indexes, with HDFC Bank Ltd falling 2 percent, while ITC Ltd ended 3.1 percent lower.
DBS Bank said it expected sustained pressure on the rupee with factors such as higher oil prices, widening current account deficit and the US Federal Reserve's rate hike cycle likely pushing it towards 75 per dollar levels.
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