HDFC Bank leads Indian shares losses

Indian shares declined on Tuesday, with HDFC Bank leading the losses due to lower-than-expected inflows from a global stock index adjustment.

The NSE Nifty 50 index dropped by 0.85 per cent to 24,139, while the S&P BSE Sensex lost 0.87 per cent to 78,956.03.

HDFC Bank, the top private lender in India and a significant stock in the Nifty 50, fell by 3.4 per cent, driving the overall index down.

MSCI increased the portion of HDFC Bank shares for foreign investors in two stages, in August and November, instead of one as expected.

Nuvama brokerage revised its forecast for inflows into HDFC Bankto to drop from $3.2-$4 billion to $1.8 billion this month.

HDFC Bank, along with financials and banks, experienced declines of 1.9 per cent and 1.5 per cent, respectively.

Profit booking increased as investors grew cautious about geopolitical risks in the Middle East and concerns about the US economy, according to Siddharth Sedani, an equity analyst at Anand Rathi Financial Services.

“Volatility and selling pressure could rise in the next few sessions, depending on the quality of U.S. macro data,” Sedani added.

Attribution: Reuters

Subediting: M. S. Salama