Indian shares end lower as IT, auto drag
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BENGALURU- Indian shares erased early gains to end Wednesday lower, as auto, IT and consumer stocks fell, outweighing gains in the energy and banking sectors.
The blue-chip NSE Nifty 50 index ended 0.5% lower at 17,415.05, while the benchmark S&P BSE Sensex fell 0.5% to 58,340.99.
A jittery broader Asian market also dented sentiment as oil prices remained volatile in the face of price-cooling moves by the United States and other countries, and amid concerns the U.S. Federal Reserve could speed up tapering of stimulus. [MKTS/GLOB]
"The market tried to consolidate after a fall earlier this week, but it looks like it was not able to hold gains, mainly due to global triggers," said Narendra Solanki, Head-Equity Research at Anand Rathi Shares & Stock Brokers.
Automobile stocks were likely reacting to automakers' lack of confidence on demand picking up in November and December, Solanki added.
Auto stocks fell 1.28%, dragged lower by Eicher Motors and Maruti Suzuki, down 2.39% and 2.34% respectively.
The Nifty IT index fell 1.52%, led by losses in Infosys Ltd, Larsen and Toubro Infotech and MindTree Ltd, all down between 2.3% and 3.4%.
The fast-moving consumer goods sub-index was down nearly 1% on concerns over rising commodity prices impacting margins.
Nifty Energy was among sub-indexes that held on to gains, ending up 0.27%, with oil prices in focus after India said it would sell 5 million barrels from its reserves in tandem with other major countries to control prices.
State-run Oil and Natural Gas Corporation was the top gainer on the sub-index, rising 4.26%.
Digital payments start-up Paytm rose 17.2%, climbing for a second day on Wednesday.
Globally, investors have been focusing on rising COVID-19 cases in Europe, weaker economic sentiment in Germany, inflation concerns and a bagful of U.S. data ahead of Thanksgiving.
