Indian shares fall as metal stocks, broader Asia decline

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People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, November 4, 2020. REUTERS/Francis Mascarenhas

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BENGALURU, Aug 2 (Reuters) – Indian shares were trading lower on Tuesday and looked set to snap a four-day rally, weighed by metal stocks amid a decline in broader Asian equities and oil prices.

The NSE Nifty 50 index (.NSEI) was down 0.49% at 17,255.80, as of 0505 GMT, and the S&P BSE Sensex (.BSESN) fell 0.44% to 57,861.69.

Broader Asian stocks fell stricken by nervousness about an escalation in Sino-U.S. tension, with U.S. House of Representatives Speaker Nancy Pelosi expected to visit Taiwan during the day.

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Meanwhile, oil prices dropped on Tuesday, raising investor concerns over a bleak outlook for fuel demand, with data pointing to a global manufacturing downturn.

“Global markets and Asian markets are down but what may support Indian markets is the falling crude and there is a possibility that we don’t fall much and get some buying at lower level,” said Neeraj Dewan, director at Quantum Securities.

Market participants this week will turn their focus to the Reseve Bank of India’s (RBI) monetary policy decision on interest rates on Friday.

With inflation at multi-year highs, the RBI’s monetary policy committee is seen raising rates, though the views on the quantum of rate increase were widely split between 25 basis points and 50 basis points, a Reuters poll of economists showed. read more

In domestic trading on Tuesday, the Nifty metal index (.NIFTYMET) fell 1.3% and was the worst performing sub-index. If the losses hold, the metal index is set to snap four straight sessions of gains.

Helping cap some of the losses, the Nifty public sector bank index (.NIFTYPSU) climbed 2.1%.

Top lender State Bank of India(SBI.NS)offered a shot in the arm to Nifty 50 index, rising 1%, while aluminium and copper manufacturer Hindalco Industries (HALC.NS) was among the top losers, declining 3.5%.

Among other individual stock moves, food delivery firm Zomato Ltd (ZOMT.NS) jumped as much as 18.7% after it reported a smaller quarterly loss late on Monday. read more

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Reporting by Rama Venkat in Bengaluru Editing by Dhanya Ann Thoppil

Our Standards: The Thomson Reuters Trust Principles.

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