Indian shares fall as oil rise weighs; Jio lists at 21.4% premium
- The benchmark Nifty 50 fell 0.41% to 22,657.35
Indian shares declined due to rising oil prices and anticipation of the US Federal Reserve's policy decision. IT stocks led losses, though small-caps and mid-caps outperformed benchmarks.
- Impact of rising oil prices and US Fed policy decision.
- Performance of IT sector and other major stocks.
- Expert views on market recovery and FPI investment.
- Key stock movements including Jio Platforms' listing.
Indian shares fell on Wednesday as rising oil prices weighed on risk appetite ahead of the US Federal Reserve’s policy decision later in the day.
Meanwhile, Jio Platforms listed at a 21.4% premium over its issue price, making it the second-largest publicly traded firm in the country by market value.
The benchmark Nifty 50 fell 0.41% to 22,657.35, and the Sensex shed 0.61% to 73,153.6, as of 9:55 a.m.(0425 GMT).
In contrast, the broader small-caps and mid-caps gained 0.7% and 0.1%, outperforming benchmarks for the third straight session after they dropped 7.3% and 5.6% last week.
Eleven of the 16 major sectors logged losses. IT stocks , which earn a significant share of their revenue from the US, dropped 3.1%, leading the sectoral losses.
Infosys fell 4.4% while TCS and HCLTech dropped 3% each.
Oil prices climbed 1.4% to $115.4 a barrel after an attack on a refinery in top exporter Saudi Arabia renewed concerns about energy supply disruptions and inflation.
However, a post-results rally in Bajaj Auto and Larsen & Toubro, which rose 3% and 4.2%, respectively, limited some of the benchmarks’ losses.
“For the Indian market to revive, crude prices have to decline and FPIs have to stop their relentless selling and turn buyers,” said VK Vijayakumar, chief investment strategist at Geojit Investments.
“For this to happen, changes in the long-term capital gains tax appear inevitable now.
There is a high probability of this happening since the massive FPI outflows have started hurting India’s otherwise good macros.“
Among stocks, Max Financial fell 2.2% after reporting its quarterly earnings.
Quarterly growth slowed significantly across key channels, said analysts at JPMorgan, adding that the stock is likely to be under pressure after the results, given slowing growth and overhang of distribution reforms.
Bucking the trend, Raymond jumped 3.5% after posting a roughly 97% year-on-year rise in second-quarter profit. Subros gained 2.6% after securing a contract worth 12.25 billion rupees ($128.79 million) from Maruti Suzuki.
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