Shares fall as China Covid surge dents risk appetite

Indian shares opened lower on Thursday, tracking a slide in global equities, as investors fretted over the surge in Covid cases in China.

The Nifty 50 index was down 0.38 per cent at 18,051.40, as of 09:18 a.m. IST, and the S&P BSE Sensex fell 0.41 per cent to 60,655.13.

Most of the major sectoral indexes declined, with information technology, auto, oil and gas, and metals shedding over 0.5 per cent.

Forty-four of the Nifty 50 constituents fell, with Hindalco, JSW Steel, Maruti Suzuki, Eicher Motors and Power Grid losing over 0.75 per cent.

Wall Street equities closed lower overnight after investors assessed the U.S. Federal Reserve's rate hike path on mixed economic data released earlier in the week and concerns over a surge in Covid-19 cases in China.

Asian markets also declined, with the MSCI Asia ex-Japan index losing 1.03 per cent.

Intraday volatility will be a factor in today's session ahead of the expiry of the December derivatives series, the last series of 2022, as traders settle their futures and options contracts.

Capping losses for domestic equities were oil prices, which fell on China demand concerns. Brent crude fell below $83 per barrel while US crude hovered around $79 per barrel.

Lower oil prices aid oil-importing countries like India, where crude constitutes the bulk of the country's import bill.

($1 = 82.7360 Indian rupees)