By Hritam Mukherjee
(Reuters) -Indian shares closed lower on Tuesday, with auto shares leading losses due to expectations of delayed domestic rate cuts while metals declined tracking a fall in global prices.
The Nifty 50 index fell 0.28% to 25,057.35 points as of 3:30 p.m. IST, while the S&P BSE Sensex dropped 0.2% to 81,820.12.
The prospect that a domestic rate cut may be delayed to early 2025 from December, following a spike in retail inflation for September, has dulled overall market sentiment, two analysts said.
Eight of the 13 sub-sectors closed lower. Stocks of automakers, who are heavily dependent on customers taking on bank loans, fell 0.8%.
Metals lost 1.4%, tracking a fall in global prices, as uncertainty about top consumer China’s economic recovery weighed following a detail-thin stimulus announcement over the weekend. [MET/L]
Reliance Industries – the second-heaviest stock on the Nifty 50 – fell 2% after reporting a drop in second-quarter profit on Monday after the markets closed.
HDFC Life Insurance Company closed 3.6% lower after reporting a lower value for new business (VNB) margin for the half year ended Sept. 30. The stock was the top percentage loser on the benchmark Nifty 50.
Inflation worries overshadowed gains in oil marketing companies and paint makers, triggered by a slide in global oil prices after a media report said Israel is willing not to strike Iranian oil targets, easing fears of supply disruption. [O/R]
Lower oil prices bear well for India, the world’s third-largest importer.
Hyundai India’s $3.3 billion IPO, the country’s biggest share sale, opened for retail buyers and was subscribed 16% as of 3:30 p.m. IST. The bidding process will run till Thursday.
Among individual stocks, Garuda Construction and Engineering soared 12% in debut trade.
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips, Sonia Cheema, Janane Venkatraman and Sumana Nandy)
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