Indian shares fell today, amid weakness in auto, banking, pharma and energy stocks, as uncertainty around the US-China trade negotiations and rising oil prices outweighed investor euphoria around the US Federal Reserve’s hints at future rate cuts.
Sensex tumbled 407.14 points, or 1.03%, to settle at 39,194, almost wiping out Thursday’s gains. Nifty settled at 11,724, down 0.91%.
Yes Bank, Maruti Suzuki, HDFC, Hindustan Unilever and Hero MotorCorp were the biggest laggards among Sensex pack, dropping as much as 4.5%.
Meanwhile, the broader market also closed mixed with BSE midcap index falling 0.38% and smallcap index advancing 0.14%.
Crude oil rose to three-week highs after Iran shot down a US military drone. “Participants’ reaction to lingering trade war scenario and geo-political tension are causing these ripples and it’s not going to fade away soon,” said Jayant Manglik, president of retail distribution at Religare Broking.
Meanwhile, Dewan Housing Finance Ltd ended 6% higher after the Mint reported that the company had offloaded ₹2,000 crore worth of debt to foreign investors.
Going ahead, the markets may continue to consolidate and may react to geopolitical tensions in Iran, crude prices and progress of monsoon, said Sanjeev Zarbade, VP for PCG Research at Kotak Securities.
“Also the Union Budget is round the corner. At this juncture, investors need to be selective in stock picking,” he added.