Mumbai: Indian shares slumped more than 1 per cent on Wednesday after data showed the country’s economic growth missed estimates, while heightened uncertainty surrounding Ukraine and surging crude oil prices kept investors on edge.
The blue-chip NSE Nifty 50 index was down 1.31 per cent at 16,574.20, as of 0511 GMT, and the S&P BSE Sensex fell 1.58% to 55,356.94, as markets resumed trading after a holiday.
“The sentiment is biased towards being bearish currently. Mainly the developments on the Russia-Ukraine crisis will be the guiding force for markets today. Rising crude prices are also adding to the headwinds,” said Yesha Shah, head of equity research at Samco Securities.
India imports more than two-thirds of its oil requirements and rising crude prices will accelerate domestic inflation while also widening the country’s current account deficit.
For Nifty 50, there is a resistance placed around 16,800 levels and until there is a clear breakout above this level, a cautious-to-bearish outlook should be maintained, Shah added.
The country’s economy expanded 5.4 per cent in the October-December quarter from a year earlier, according to data released after market hours on Monday, missing economists’ forecast of a 6 per cent growth.
Oil prices rose above $110 a barrel on Wednesday, their highest since early July 2014, as sanctions on Russian banks hampered trade finance for crude shipments.
Nifty’s metal index and energy index were among the top performers, rising 4.4 per cent and 0.8 per cent, respectively.
