Monday, December 6

Indian shares edge lower as financials, Britannia weigh

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BENGALURU — Indian shares were marginally lower on Tuesday as financial stocks weakened after gaining more than 1% in the previous session, while biscuit maker Britannia Industries slipped following a dim earnings report.

By 0508 GMT, the blue chip NSE Nifty 50 index fell 0.09% to 18,052.95, while the benchmark S&P BSE Sensex lost 0.15% to 60,451.86.

After falling from record highs on heavy foreign selling and overvaluation fears in October, Indian stocks have somewhat rebounded this month, partly due to investors buying into the dip and positive sentiment during the festive season of Diwali.

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“(The) overall macro narrative has been quite decent,” said Saion Mukherjee, managing director & head of equity research for India at Nomura, adding that worries about inflation would linger for a while.

In Mumbai trading, Britannia Industries fell as much as 4.9%, a day after the company reported a fall in September-quarter profit, highlighting “unprecedented inflation” in market prices.

The Nifty Financial Services Index was down 0.48%, with private-sector lender HDFC Bank and mortgage lender HDFC Ltd shedding more than 1% each.

Limiting losses on the main indexes were auto stocks adding 1.38% and tracking their sixth session of gains in the last seven. Mahindra and Mahindra was up 1.5% ahead of its September-quarter results later in the day.

Among other individual stocks, Cadila Healthcare rose as much as 3.1% after the drugmaker said the central government had ordered 10 million doses of its COVID-19 vaccine.

Sobha jumped as much as 10.7% after the real estate firm said its September-quarter profit nearly tripled from a year earlier. (Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Ramakrishnan M.)

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