By Bharath Rajeswaran
BENGALURU (Reuters) -Indian shares fell on Thursday, dragged by information technology (IT) stocks after Tech Mahindra’s disappointing earnings, while rising U.S. Treasury yields intensified fears of interest rates staying higher for longer.
The NSE Nifty 50 index was down 0.95% at 18,940.70 as of 10:10 a.m. IST, and the S&P BSE Sensex fell 0.89% to 63,475.50.
All 13 major sectoral indexes logged losses. High weightage banks and IT lost 1% and 1.5%, respectively.
Tech Mahindra lost more than 3%, after it posted its biggest fall in profit in over 16 years.
Adani group stocks lost between 2% and 6%, on reports of a probe by India’s accounting regulator on an EY member firm that audits five group companies. Adani Enterprises shed 3.5% and was the top Nifty 50 loser.
Realty shed over 2%, while metals, auto and public sector banks fell over 1% each.
The more-domestically focussed small- and mid-caps lost over 3% and 2%, respectively.
Asian markets fell, with the MSCI Asia ex-Japan index losing 1.4%.
U.S. stocks tumbled on Wednesday as Alphabet shares slid after disappointing earnings and as U.S. Treasury yields rose. [MKTS/GLOB]
“With the (U.S.) 10-year bond yield at near 5%, foreign investors are likely to be in sell mode,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
“If the conflict in the Middle East lingers for long, it has the potential to derail global growth.”
Brent oil rose above $90 per barrel on Wednesday and was hovering around those levels in Asian hours on Thursday after Israel Prime Minister Benjamin Netanyahu said the country was preparing for a ground invasion of Gaza.
Private lender Axis Bank was the only gainer in the Nifty 50 index, up 0.75%, after it beat September-quarter profit estimates, supported by strong loan growth.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun H K)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.