Indian Shares End Notably Lower As FII Selling Continues
(RTTNews) - Indian shares gave up early gains to end notably lower on Monday as persistent foreign selling, elevated crude oil prices and rising domestic bond yields offset investor optimism stemming from the Reserve Bank of India's (RBI) weekend measures to support the rupee and manage liquidity.
India's benchmark 10-year government bond yield surged above 7.35 percent today, reaching its highest level in nearly three years after the RBI announced liquidity tightening measures.
It is feared that higher borrowing costs could affect companies' profits and put pressure on equity valuations.
The U.S. dollar held steady near its strongest level in a year and a half after Yemen's Iran-backed Houthis stepped up strikes on Saudi Arabia.
Two tankers were attacked over the weekend, heightening concerns over further disruptions to Middle East crude supplies and offsetting hopes of Russia-Ukraine energy ceasefire.
Oil prices traded higher in early European trade despite U.S. President Donald Trump announcing a diesel deal with Russia and claiming that Russia and Ukraine agreed to an "energy ceasefire" and will halt attacks on each other's energy facilities.
The benchmark 30-share BSE Sensex gave up early gains to end the session down 547.65 points, or 0.76 percent, at 71,924.68, while the NSE Nifty index fell 157.10 points, or 0.70 percent, to 22,363.35.
The BSE mid-cap and small-cap indexes rose 0.1 percent and 1.1 percent, respectively. The market breadth was positive on the BSE, with 2,300 shares rising while 2,153 shares fell and 283 shares closed unchanged.
Among the prominent decliners, Bharti Airtel, TCS, SBI, Larsen & Toubro, Hindustan Unilever, Tech Mahindra and ITC lost 2-3 percent.
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