Indian stocks fall more than 1% as IT and energy stocks sell off – Reuters

People stand outside the Bombay Stock Exchange (BSE), after Sensex broke above the 60,000 level for the first time, in Mumbai, India, September 24, 2021. REUTERS/Francis Mascarenhas

BENGALURU, Sept 1 (Reuters) – Indian stocks fell on Thursday as investors sold information technology firms on fears of a slowdown in demand, while a hike in fuel export taxes and domestic crude hit the energy sector.

The NSE Nifty 50 Index (.NSEI) ended down 1.22% at 17,542.80 and the S&P BSE Sensex (.BSESN) fell 1.3% at 58,766.59. The indices were also weighed down by economic growth data from April to June below expectations.

The Nifty IT Index (.NIFTYIT) fell 2%.

“Global weakness is reflected in Indian equity markets. Information technology is selling on growth concerns in key markets like the US and Europe,” said Siddharth Khemka, head of research on retail at Motilal Oswal Financial Services.

“There is a bit of weakness due to slightly lower than expected GDP (gross domestic product). There are hardly any significant positive triggers in the market.”

While the pace of economic growth at 13.5% was the fastest in a year, economists warned that higher interest rates could dampen that momentum in coming quarters. Read more

The energy index (.NIFTYENR) fell 1.9% after the Indian government lifted taxes on aviation, diesel fuel exports and domestic crude oil on Wednesday night. Read more

Shares of Oil & Natural Gas Corp (ONGC.NS) fell 2.81%, while Reliance Industries (RELI.NS) fell 2.94%.

Zee Entertainment (ZEE.NS) fell 6% after a Reuters report said India’s competition regulator felt further scrutiny was needed over the company’s potential merger with the Indian unit. from Japanese Sony (6758.T). Read more

Shares of Dish TV (DSTV.NS) jumped 20% after the satellite broadcasting service provider said Chairman Jawahar Lal Goel would not seek reappointment, signaling a victory for major shareholder Yes Bank ( YESB.NS) in its push for a board overhaul. Read more

Reporting by Nallur Sethuraman in Bangalore; Editing by Dhanya Ann Thoppil and Aditya Soni

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