Chennai, India (BBN) – Indian shares fell on Wednesday tracking weaker Asian markets, with consumer stocks such as ITC Ltd and metals shares such as Vedanta Ltd weighing on the broader NSE index.
Asian shares slipped on Wednesday after falling crude oil prices took a toll on Wall Street overnight. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6 per cent, reports The Hindu Business Line.
Oil prices fell over 1 per cent on Wednesday, after the International Energy Agency cast doubts over the past few months’ narrative of tightening fuel markets. On the supply side, rising U.S. output also pressured prices.
The NSE index was 0.27 per cent or 28 points lower at 10,158.60 as of 12.10 pm, while the benchmark BSE index declined 0.25 per cent or 83.44 points to 32,858.43.
“Increasing oil prices and cut in the GST (a new nationwide sales tax) is raising doubts as to how it will impact the fiscal deficit of the country,” said Vinod Nair, Head of Research at Geojit Financial Services.
The Nifty FMCG index fell 1.1 per cent. ITC was the biggest drag on the NSE index, declining 1.7 per cent.
The Nifty Metal index slipped 1.9 per cent, tracking lower global commodity prices.
Metal stocks Vedanta and Hindalco Industries Ltd fell 2.1 and 2.5 per cent, respectively.
Sun Pharmaceutical Industries Ltd dropped 2.3 per cent after the drugmaker’s September-quarter profit plunged 59 per cent, hurt by rising competition in the generics market and greater pricing scrutiny in the United States.
Oil refiners such as Hindustan Petroleum Ltd and aviation shares, including IndiGo Airlines’ parent InterGlobe Aviation Ltd, jumped on plunging crude oil prices.
Hindustan Petroleum rose 2.6 per cent, while InterGlobe Aviation gained 3.3 per cent.