Indian Shares Retreat On Risk Aversion

(RTTNews) - Indian shares fell notably on Tuesday as lingering uncertainty around tariffs coupled with a weakening rupee on the back of persistent foreign portfolio outflows spurred risk aversion.

The Indian rupee extended its losing streak for the fourth trading day, hitting 91-per-dollar for the first time as the government tabled a bill in Lok Sabha to raise FDI in the insurance sector to 100 percent.

Investors also awaited key U.S. jobs and inflation data for more clarity on the U.S. economic and rate outlook.

The benchmark BSE Sensex dropped 533.50 points, or 0.63 percent, to 84,679.86, extending the previous session's decline amid weakness in metal and financial shares. The broader NSE Nifty index fell 167.20 points, or 0.64 percent, to 25,860.10 while the BSE mid-cap and small-cap indexes lost 0.8 percent and 0.7 percent, respectively. The market breath was weak on the BSE, with 2,523 shares falling while 1,653 shares rose and 159 shares closed unchanged.

Among the prominent decliners, Axis Bank and Eternal both slumped around 5 percent. UltraTech Cement, Tata Steel, Bajaj FinServ and HCL Technologies fell around 2 percent each.

Globally, Asian markets fell broadly and European stocks were subdued in early trade ahead of the release of U.S. nonfarm payroll report for October and November later in the day.

Gold traded lower after surging to a seven-week high in the previous session. The dollar was steady but held near recent lows amid bets the U.S. Federal Reserve will cut rates twice next year.

Oil prices fell more than 1 percent, extending losses from the previous session on growing expectations of a 2026 supply glut.

Optimism over Ukraine peace talks prevailed after U.S. President Donald Trump claimed fresh progress in peace talks.

Following talks between European leaders and U.S. officials, Trump said "we're closer now than we have been ever" to a Ukraine peace deal.