Indian shares dip as ITC weighs on benchmarks
By Vivek Kumar M and Bharath Rajeswaran
(Reuters) -India's benchmark indexes fell on Wednesday, dragged by a drop in heavyweight ITC, even as positive global cues buoyed broader sentiment.
The Nifty 50 was down 0.25% at 24,765.35, while the BSE Sensex traded 0.27% lower at 81,332.03 as of 10:35 a.m. IST.
ITC, the sixth heaviest stock in Nifty 50 index, shed about 3% after a large block deal where its largest shareholder British American Tobacco likely pared some stake in the company. The stock was also trading ex-date for a dividend of 7.85 rupees.
Consumer goods stocks dropped 1.4%, weighed down by losses in ITC.
However, seven of 13 major sectoral indices advanced. Mid-cap and small-cap indices gained 0.2% and 0.3%, respectively
The Nifty's retreat near the 25,000 level signals caution, and with the monthly derivatives expiry looming on Thursday, markets are likely to remain choppy in the short term, said Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services
"The U.S. Federal Reserve's policy minutes, due later today, will be crucial for market direction, offering cues on the central bank's outlook amid persistent inflation and fiscal concerns," Khemka said.
Life Insurance Corporation of India jumped 7% after it posted higher profit for the fourth quarter, helped by lower employee-related costs.
Belrise Industries listed at 100 rupees on the National Stock Exchange, a premium of 11.11% to its issue price of 90 rupees.
Bosch fell 3.2% on posting a drop in March quarter profit. It was the top percentage loser in auto index, which fell 0.6%.
Other Asian shares rose marginally on the day, with the MSCI Asia ex-Japan adding 0.1%, buoyed by signs of easing trade tensions. [MKTS/GLOB]
($1 = 85.3020 Indian rupees)
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