Sethuraman, N. R.
BENGALURU, India (Reuters) – Indian shares fell Monday, reaching a new low of more than a month, along with their Asian counterparts, due to concerns about the local industrial production and weak consumer demand in China, which is the largest consumer in Asia. Investors are also focusing on data on domestic inflation, expected later that day.
The Nifty 50 index was down 0.6% at 19,310, while the S&P BSE Sensex fell 0.5% to 64,989, as of 10:28 a.m. IST.
Metal stocks fell by about 2%. The public sector bank and auto indexes each dropped over 1%.
The Indian rupee has fallen below 83 dollars to the U.S. for the first since October 2022 as the U.S. yields have risen, putting pressure on Asian currencies. [INR/]
India’s growth rate in industrial output fell to a low of 3,7% on a year-on-year basis, a record for three months. Disappointing credit data also added to concerns over China’s slowing down economy.
Anita Gandhi is a full-time director of Arihant Capital Markets. She said that the industrial output numbers are weak and this shows a weakness in the macro aspect, as they are very important for capex, manufacturing, growth, and manufacturing.
Over the last few days, foreign investors have sold shares worth 30.73 billion rupees ($370.8 million), despite betting on the country’s economic growth and decreasing inflation during the last quarter. Analysts said that foreign investors sold shares valued at 30.73 billion rupees (about $370.8 million) in the last few sessions. This is also causing some anxiety among Indian investors.
Investors await India’s retail inflation data. It is likely to have accelerated in July due to surging food costs, exceeding the Reserve Bank of India’s 2%-6% range tolerance for the first five months.
Adani Ports was the worst performing stock among individual stocks after Deloitte quit, amid concerns regarding certain related-party transactions. Adani Enterprises was the flagship company for Adani Group. It fell by 4.3%.
(Reporting and editing by Sonia Cheema in Bengaluru. Sethuraman NR is based in Bengaluru.