India stock benchmarks reverse gains as financials weigh

MUMBAI: India’s equity benchmarks reversed early gains to end lower on Tuesday, as an expiry-driven pullback in heavyweight financials offset a broad-based rally, while investors awaited a key Goods and Services Tax (GST) Council meeting later this week.

The NSE Nifty 50 fell 0.18 percent to 24,579.60 and the BSE Sensex slipped 0.26 percent to 80,157.88. The indexes rose as much as 0.5 percent earlier in the session.

The slide stems from expiry-driven unwinding in financials, which dominate the Nifty, two traders said.

The NSE’s weekly derivatives expiries shifted to Tuesday from Thursday on September 2, adding extra pressure and volatility, according to traders.

Financials ended 0.7 percent lower after climbing about 0.35 percent earlier in the session.

In contrast, expectations of GST cuts buoyed consumer stocks, which advanced 1.1 percent. Nestle India , Hindustan Unilever, Dabur India and Emami gained between 1 percent and 4 percent.