Weak global cues: Indian shares hit 7-month low

Weak global cues: Indian shares hit 7-month low

Bombay Stock Exchange (BSE) building in Mumbai. Reuters File Photo

Indian shares extended falls on Friday to hit a fresh seven-month low, in line with broader Asia as investors fled for safety amid lingering fears about global trade and economic growth.

The broader NSE index came close to test the key psychological level of 10,000 points, shedding as much as 1.2% to its lowest since March 26. The benchmark BSE index declined 1.1% to its lowest since April 5.

Asian shares fell to a 20-month low despite a bounce on Wall Street overnight, highlighting fragile investor confidence.

A host of factors including a depreciating rupee, a tick-up in oil prices overnight, and weak cues from global markets are weighing on the market, said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.

As the derivatives contracts expired on Thursday, there was a spike in rollovers, especially on the short side, which is an added concern, said Khemka.

Both the BSE and the NSE indexes were down 2.2% for the week, in what could be their second straight weekly drop.

IT giants Infosys Ltd and Tata Consultancy Services Ltd (TCS) were the top drags on Friday.

Infosys dropped 2.1% to its lowest since July 6, while TCS slipped 2.5% to a four-month low.

Private-sector lender Yes Bank Ltd was the top percentage loser, plunging as much as 15% to a four-week low after its quarterly profit missed estimates.

Axis Bank dropped 3.2%, while HCL Technologies Ltd fell 3.4%.

JSW Steel fell to a two-month low after brokerages cut target prices, citing concerns over debt and margins.

Conglomerate Reliance Industries rose as much as 1.9%, making it the top boost.

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