Indian shares fall on recession worries; financials, metals drag

E I D-Parry (India)

29/08/2019 05:21

* NSE index down 0.46%, BSE index 0.44% lower
    * Domestic investors await GDP data
    * Indiabulls Housing Finance top loser on NSE

    By Chandini Monnappa
    Aug 29 (Reuters) - Indian shares slipped on Thursday, led by
declines in financials and metals, as fears of an impending
global recession and worsening Sino-U.S. trade relations marred
investor sentiment.
    The broader NSE index  .NSEI  fell 0.46% to 10,994.55 as of
0354 GMT, while the benchmark BSE index  .BSESN  inched down
0.44% to 37,293.80.
    Meanwhile, stocks in regional markets across Asia struggled
to recover with MSCI's broadest index of Asia-Pacific shares
outside Japan  .MIAPJ0000PUS  trading flat.
    Domestic investors also remained cautious ahead of GDP data
for the April-June quarter due on Friday.  urn:newsml:reuters.com:*:nL3N25M2TG
    "Sentiment is a fair worry, consumer and business sentiment
has to change," said Sunil Sharma, chief investment officer at
Sanctum Wealth Management in Mumbai.
    "The outcome of the trade war is also uncertain."
    The weather office on Wednesday said monsoon rains in India
were below average for the first time in five weeks in the week
through Wednesday, further dampening spirits.  urn:newsml:reuters.com:*:nL3N25O34Q
    Monsoon rains are key to farm output and economic growth as
the agricultural sector accounts for about 15% of India's $2.5
trillion economy.
    Indian markets are likely to see some volatility ahead of
August derivative contracts' expiry.
    Shares of Indiabulls Housing Finance Ltd  INBF.NS  slipped
as much as 7.97%, the stock will not be included on the Nifty 50
NSE index from Sept. 27.  urn:newsml:reuters.com:*:nFWN25O05F
    The Nifty metals index  .NIFTYMET  inched 0.82% lower, with
all 14 constituents trading in the red.
    Only 10 of the 50 stocks on the NSE blue-chip index were
trading in postive territory.
    Meanwhile, sugar producers like E.I.D.-Parry (India) Ltd
 EIDP.NS  gained as much as 2.45% and Rana Sugars Ltd  RNSG.NS 
surged 6.98% after India's cabinet approved incentives of 62.68
billion rupees ($876.74 million) to help cash-strapped mills to
export 6 million tonnes of sugar in the 2019/20 marketing year
starting from Oct. 1. urn:newsml:reuters.com:*:nL3N25O3D2
    Shares of Sun Pharmaceutical Industries Ltd  SUN.NS  was the
top gainer on the NSE index, rising as much as 4.49%. Media
reports https://www.business-standard.com/article/markets/sebi-inquiry-clears-sun-pharma-finds-no-merit-in-allegations-of-fraud-119082801436_1.html
 on Thursday said an enquiry by the Securities and Exchange
Board of India (SEBI) had found no merit in allegation of
violation of securities laws by the firm.
    On Wednesday late evening, India's federal cabinet approved
further liberalizing of foreign direct investment (FDI) rules in
digital media, coal mining, associated infrastructure and sales
of fuels in an attempt to get economic growth back on track.
 urn:newsml:reuters.com:*:nL3N25O3DX    
    
    

 (Reporting by Chandini Monnappa in Bengaluru; Editing by Rashmi
Aich)
 ((Chandini.M@thomsonreuters.com; 910867497919;))