Indian shares snapped three sessions of gains to end lower on Tuesday, after the outcome of the central bank's meet failed to assuage investors, as they expected implementation of the proposed measures to take time. The broader NSE index ended 1 percent lower at 10,656.20, while the benchmark BSE index closed down 0.84 percent at 35,474.51.
Yes Bank Ltd and Hindalco Industries Ltd were the biggest losers on the NSE index, with shares ending 6.2 percent and 5.3 percent lower, respectively. IT stocks Wipro Ltd and Tech Mahindra Ltd closed more than 3 percent lower each, hurt by strengthening of the India rupee against the dollar.
In its first meeting since the extent of a deep rift between the central bank and the government became public, the Reserve Bank of India (RBI) said on Monday its board would support small businesses and give banks more time to step up capital norms. It has also decided to form an expert committee to look into whether RBI reserves are adequate.
The Narendra Modi-led government is concerned that low crop prices and difficulties small businesses face in borrowing may dent its prospects in numerous state elections over coming weeks, and a nationwide election due by May next year.
State-run lenders weakened, with Nifty PSU bank index down as much as 1.7 percent. Shares of State Bank of India lost up to 1.7 percent, while Oriental Bank of Commerce Ltd's stock fell as much as 5.7 percent. Nifty IT index fell 1.8 percent, while shares of Infosys and Tech Mahindra declined as much as 1 and 3.6 percent, respectively.
Comments
Comments are closed.