Indian shares fell on Monday to a more than one-month low, in line with Asian peers, weighed by concerns around local industrial output and weak consumption in top consumer China, while investors focus on domestic inflation data due later in the day.
The Nifty 50 index was down 0.6 per cent at 19,310, while the S&P BSE Sensex fell 0.5 per cent to 64,989, as of 10:28 a.m. IST.
Metal stocks were the top drag, falling about 2 per cent, while auto, public sector bank index were down over 1 per cent, each.
Meanwhile, the Indian rupee fell below 83 to the U.S. dollar for the first time since October 2022, as a jump in U.S. yields pressured Asian currencies. [INR/]
India’s industrial output growth rate slipped to a three-month low of 3.7 per cent year-on-year in June, while disappointing credit data added to worries about China’s slowing economy, compounded by property shocks.
Industrial output numbers were pretty weak, which is showing some weakness on the macro side as it is very important from the capex, growth and manufacturing angle, said Anita Gandhi, whole-time director at Arihant Capital Markets.
Foreign investors, who had bet on the country’s growth and cooling inflation in the last quarter turned net sellers over the last few sessions. Foreign investors sold shares worth 30.73 billion rupees ($370.8 million) on Friday, which is also causing some jitters among Indian investors, analysts said.
Investors are awaiting India’s retail inflation data, which likely accelerated to 6.40 per cent in July on surging food prices, breaching the upper end of the Reserve Bank of India’s 2 per cent-6 per cent tolerance band for the first time in five months.
Among individual stocks, Adani Ports fell 2.7 per cent after its auditor Deloitte resigned, amid concerns over certain related party transactions. Adani Group’s flagship company Adani Enterprises fell 4.3 per cent.
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