Indian stocks slide as metals, banks falter; Nykaa flies away for her debut


Clouds are visible above the Bombay Stock Exchange (BSE) building in Mumbai, India on May 25, 2016. REUTERS / Danish Siddiqui

BENGALURU, Nov. 10 (Reuters) – Indian stocks fell on Wednesday as metals and bank stocks weakened amid fears of higher inflation, as online fashion start-up Nykaa debuted on the market.

The Blue Chip NSE Nifty 50 Index (.NSEI) fell 0.51% to 17,952.45 and the benchmark S&P BSE Sensex (.BSESN) lost 0.51% to 60,122.6 at 5:06 am GMT.

The Nifty Metal Index (.NIFTYMET) fell 2.2%, while Tata Steel (TISC.NS), JSW Steel (JSTL.NS) and Hindalco Industries (HALC.NS) lost between 2.9% and 3.6%.

Dalian iron ore futures hit their lowest level in a year, as demand concerns escalated amid China’s restrictions on its steel production and worsening the liquidity crisis in the country’s real estate sector.

In addition to the losses, state mining company Coal India (COAL.NS) lost as much as 2.3%.

The Nifty Bank Index (.NSEBANK) fell 0.88%, with lenders HDFC Ltd (HDFC.NS), ICICI Bank (ICBK.NS) among the biggest losers in the Nifty 50.

“The likelihood of higher inflation, not only in the United States and Europe but also in India, will affect interest rates and weigh on markets,” said Joseph Thomas, head of research at Emkay Wealth Management . He added that several small and mid-cap Indian companies are rate sensitive because they are in debt or have borrowing plans.

Risk sentiment in wider Asian markets was also lower as surges in Chinese oil and factory prices added to concerns of a high inflation reading in the United States.

On the bright side, Nykaa’s parent company made its highly successful debut, valuing the Indian online beauty startup at nearly $ 13 billion. Read more

Investors also focused on the initial public offering of fintech company Paytm, which is expected to be India’s largest, which closes its underwriting later on Wednesday. The IPO was subscribed at 48% on the second day of the issue period. Read more

Reporting by Anuron Kumar Mitra and Vishwadha Chander in Bengaluru; Edited by Ramakrishnan M.

Our Standards: The Thomson Reuters Trust Principles.


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