Financials, IT weigh on Indian shares; Adani stocks fall on US probe report
Financials and IT stocks dragged Indian shares down on Tuesday on worries of foreign outflows amid strong US Treasury yields and trade uncertainty, while Adani group shares slipped after a Wall Street Journal report on a U.S. probe into Iranian LPG imports.
The Nifty 50 dipped 0.70% to 24,542.5, while the BSE Sensex fell 0.78% to 80,737.51.
Twelve of 13 major sectors logged losses. Heavyweight financials and private banks lost 0.7% and 1.2% respectively, while IT index fell 0.7%.
Foreign portfolio investors (FPIs), who have higher holdings in financials and IT, turned net sellers of Indian shares in the last two sessions after a five-day buying streak.
'Given the attractive, risk-free yields on U.S. Treasuries, foreign investors see limited incentive in emerging markets such as India—especially with ongoing global trade uncertainties,' said Amit Jain, co-founder of Ashika Global Family Office.
Indian benchmarks end lower as IT, metals outweigh growth boost
'At current levels, the risk-reward balance in Indian equities appears unfavourable. Given elevated valuations and persistent global trade concerns, markets are likely to see time correction in the next few months,' Jain said.
Most Adani group stocks fell, with the Nifty 50 constituents, Adani Enterprises and Adani Ports, losing about 2% and 2.5%, respectively.
The conglomerate has denied any 'deliberate engagement' in sanctions evasion and said it was unaware of any investigation by U.S. authorities.
The broader small-cap index closed flat, while mid-cap index fell 0.5%.
Among individual stocks, Sobha jumped 5.5%, boosting the realty index by 1.2%, after several brokerages projected a strong recovery in fiscal 2026.
Other Asian markets edged cautiously higher, with the MSCI Asia ex-Japan index rising 0.4% after losing 1% n the last two sessions.
The White House said U.S. President Donald Trump and China's Xi Jinping may speak this week, days after Trump accused Beijing of backtracking on tariff rollback commitments.
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