BENGALURU: Indian shares fell on Thursday, weighed by losses in information technology companies on concerns over growth, while a government move to raise taxes on fuel exports and domestic crude dragged energy stocks.
The NSE Nifty 50 index was down 0.5% at 17,670, as of 0454 GMT, while the S&P BSE Sensex dropped 0.45% at 59,269.73. The Nifty IT index dropped 1.5%.
“Global weakness is reflecting in Indian equity markets. IT is seeing selling due to concerns of growth in key markets like US and Europe,” said Siddharth Khemka, head of retail research at Motilal Oswal Financial Services.
“There is a little bit of weakness because of marginally lower than expected GDP. There are hardly any big positive triggers in the market.
On every decline the market is finding strength, but the follow up is missing at higher levels.“
India’s economy grew at its fastest pace of 13.5% year-on-year in April-June, though economists flagged that growth could lose momentum in coming quarters as higher interest rates cool economic activity.
Indian government late Wednesday raised taxes on aviation, diesel fuel exports and domestic crude oil, dragging the energy index down 1%.
Shares of Oil & Natural Gas Corp fell 2.6%, while Reliance Industries dropped 1.6%.
Shares of SpiceJet slumped as much as 14.7% after its chief financial officer resigned, with the low-cost carrier posting a wider quarterly loss amid increased scrutiny over mid-air incidents.
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Zee Entertainment shares fell as much as 4.9% after a Reuters report said Indian competition regulator found that more scrutiny was needed over its prospective merger with the Indian unit of Japan’s Sony.
Meanwhile, New Delhi Television said a major stake sale by its founders to Adani group would require clearance from India’s tax authorities.
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