Sensex, Nifty Reverse Early Gains Amid Global Selloff

Indian shares ended Tuesday’s session lower as sharp falls in Chinese and Hong Kong shares spurred a bout of risk aversion.

Asian stocks hit their lowest this year as investors fled Chinese tech stocks, bonds and currencies amid concerns over Beijing’s sweeping crackdown on companies ranging from education firms to the technology sector.

European markets lost ground and U.S. stock futures traded lower in early pre-market trade ahead of earnings from big tech companies.

Also, a two-day policy meeting of the U.S. Federal Reserve gets underway later today, with investors waiting to see how the central bank will balance fast-rising prices with the complication of increased coronavirus infections.

The benchmark 30-share BSE Sensex hit as high as 53,024 early in the session before reversing direction to end the session down 273.51 points, or 0.52 percent, at 52,578.76. The broader NSE Nifty index dropped 78 points, or 0.49 percent, to settle at 15,746.45.

Shares of Dr Reddy’s Laboratories plunged 10.3 percent after the drug maker posted lower-than-expected quarterly earnings.

The company also announced that it has received a subpoena from the U.S. market regulator SEC for production of documents pertaining to CIS (Commonwealth of Independent States) geographies.

Peers Cipla and Divis Laboratories lost 3.5 percent and 2.5 percent, respectively.

Axis Bank gave up 3.3 percent as the private sector lender reported lower growth in net interest income during the first quarter ended June.

Adani Ports declined 3 percent after raising $750 million via long-term bonds.

On the positive side, Bajaj FinServ, Tata Steel, SBI Life and Hindalco climbed 2-4 percent.