Indian shares ended lower for the second day running on Wednesday, with weak cues from Asia and Europe denting sentiment as concerns over inflation intensified.
Brent crude prices hit the $85 a barrel mark and the latest data from China showed broad-based inflation pressure on both the production side, rekindling fears of excessive inflation and its impact on global growth.
China’s property woes also rattled investors ahead of highly anticipated U.S. consumer inflation data due out later in the day that could test the Fed’s stance on rate hikes.
Shares of Fantasia Holdings Group plunged by nearly half to a record low in Hong Kong at one point after the debt-laden Chinese developer defaulted on a U.S. dollar bond and further warned there is no guarantee it could meet other financial obligations.
Meanwhile, China Evergrande Group is due to make coupon payments totaling US$148.1m by today U.S. time. Failure to make payment would be a default.
The benchmark 30-share S&P BSE Sensex ended 80.63 points or 0.13 percent lower at 60,352.82, after having hit as low as 59,967.45 earlier in the day.
The broader NSE Nifty index hit an intraday low of 17,915 before ending down 27.05 points, or 0.15 percent, at 18,017.20.
Metal stocks succumbed to heavy selling pressure, with Coal India, JSW Steel, Tata Steel and Hindalco losing 2-3 percent after iron ore prices plunged amid concerns that industrial demand is likely to remain weak.
IndusInd Bank tumbled 3.3 percent after whistleblower allegations suggested that the bank’s microfinance arm is evegreening loans, and has governance issues.
On the positive side, Reliance Industries, Britannia, Mahindra & Mahindra, Bharti Airtel and UPL climbed 1-3 percent.
Sugar stocks saw broad-based gains. Shree Renuka Sugars jumped 4.9 percent, Bajaj Hindusthan Sugar surged 4.7 percent and Balrampur Chini Mills rallied 2.7 percent.
Market Analysis
Sensex, Nifty End Off Day’s Lows
2021-11-10 10:56:50
