Mumbai: Indian shares fell on Wednesday, skidding further away from last week’s record highs amid losses in private banking stocks, and US inflation worries weighing on global sentiment.
The blue-chip NSE Nifty 50 index fell 0.21 per cent to 17,711.3, and the benchmark S&P BSE Sensex was down 0.43 per cent at 59,413.27.
Trade remained volatile, with the Nifty volatility index rising 1.6 per cent ahead of the September futures and options expiry on Thursday. The Indian rupee weakened to its lowest level in a month, as expectations of a tapering in the US Federal Reserve’s bond purchases sent US bond yields and the greenback higher.
While domestic economic recovery remained robust and COVID-19 risks were low, concerns about China Evergrande’s debt crisis and the impact of US bond buy tapering persisted, said Mohit Ralhan, managing partner and chief investment officer at TIW Private Equity.
Privates sector banks stocks hit
Private banks extended losses, with Housing Development Finance Corp dropping over 2 per cent to be the biggest loser on the Nifty 50 index.
Meanwhile, public sector banks surged over 2 per cent, with Union Bank of India advancing more than 4 per cent to drive gains in the sector. Public sector companies were benefiting from a gap in valuation with respect to other stocks, said Anita Gandhi, director at Arihant Capital Markets.
Metal stocks also rose over 2 per cent, with Coal India jumping as much as 13 per cent to its highest since January last year, helped partly by soaring coal prices.
Real estate stocks rebounded from the previous day’s drop to end higher for the sixth time in seven sessions.
