Financials, IT weigh on Indian shares; Adani stocks slip on report of US probe
Indian shares fell on Tuesday, weighed by financials and IT stocks, while Adani group shares slipped after the Wall Street Journal reported U.S. was probing whether the conglomerate had imported Iranian LPG into India.
The Nifty 50 dipped 0.29% to 24,645.1, while the BSE Sensex fell 0.33% to 81,103.75 as of 10:47 a.m. IST.
Eight of 13 sectors logged losses. Heavyweight financials and private banks lost 0.25% and 0.7% respectively, while IT index fell 0.4%.
The recent FPI outflows, driven by risk aversion amid trade uncertainties, have weakened the financials and IT sectors, according to two analysts.
FPIs turned net sellers of Indian shares in the last two sessions after a five-day buying streak.
Most Adani group stocks fell, with the Nifty 50 constituents, Adani Enterprises and Adani Ports, losing 1.2% and 1.5%, respectively.
The drop follows a Wall Street Journal report that U.S. prosecutors are probing if the Adani group had imported Iranian LPG into India through its Mundra port.
Indian benchmarks end lower as IT, metals outweigh growth boost
The conglomerate has denied any 'deliberate engagement' in sanctions evasion and said it was unaware of any investigation by U.S. authorities on this subject.
Other Asian markets edged cautiously higher, with the MSCI Asia ex-Japan index rose 0.4%.
Meanwhile, 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.
'Global uncertainties have led investors to adopt a risk-averse approach,' said Vinod Nair of Geojit Investments.
However, Nair expects continued domestic market consolidation this week, with strong macro fundamentals, improving monsoon prospects and a likely 25-basis-points rate cut by the Reserve Bank of India (RBI) offsetting global trade turbulence.
Despite headline pressure, broader markets outperformed. Small-cap and mid-cap indexes rose 0.5% and 0.1%, respectively, highlighting underlying domestic strength.
Among other stocks, Swiggy rose 2.1% after Morgan Stanley initiated coverage with an 'overweight' rating.
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