India’s benchmark indexes settled lower on Wednesday, as renewed worries about a slowdown in the United States hit global markets and shares of information technology companies.
The Nifty 50 index (.NSEI), opens new tab ended 0.32% lower at 25,198.7 points, while the S&P BSE Sensex (.BSESN), opens new tab fell 0.25% to 82,352.64.
Asian shares and global stock futures tumbled, led by a heavy decline in technology names and as worries about the global growth outlook drove investors out of risky assets.
Tepid U.S. manufacturing data spurred worries about a potential slowdown in the world’s largest economy, and weighed on Asian markets (.MIAPJ0000PUS), opens new tab, which dropped 1.8%.
A slew of U.S. economic data is due this week, including readings on job openings, jobless claims and the closely-watched nonfarm payrolls report on Friday.
“If upcoming U.S. economic data remains tepid, it will further weigh on domestic equities, but any adverse impact will be short-lived,” said Pratik Oswal, chief of passive business at Motilal Oswal Asset Management Company.
Indian equities should remain relatively resilient compared to other Asian and emerging market peers, due to the liquidity surplus and domestic-tilt across most sectors barring IT and pharmaceuticals, Oswal said.
Nine of the 13 major sectors logged losses while the broader and more domestically focussed small-caps (.NIFSMCP100), opens new tab closed flat and mid-caps (.NIFMDCP100), opens new tab shed 0.1%.
Indian information technology companies (.NIFTYIT), opens new tab, which earn a significant share of their revenues from the U.S., lost about 1%.
(Inputs from Reuters)
Read More :Godfrey Phillips’ Share Price Declines Amid Sale of Retail Business
