Indian shares slide to over three-month lows as tepid earnings, global trade risks rattle investors
Indian shares fell to their lowest levels in over three months in a broad-based sell-off, led by IT shares and Reliance Industries, as tepid corporate earnings, global trade worries and unabated foreign fund outflows rattled investors. The Nifty 50 dropped 1.38% to 25,232.5, and the BSE Sensex fell 1.28% to 82,180.47, their lowest closing levels in more than three months. The broader small-caps and mid-caps slumped 2.9% and 2.6% to close at their lowest levels in eight months and three months, respectively. Valuations are being reset, said Dharmesh Kant, head of equity research at Cholamandalam Securities. “While there have been outliers, most of the Nifty 50 companies that have reported December-quarter earnings have disappointed.” All 16 major sectors tumbled on the day, with market breadth turning sharply negative. Only 28 of the Nifty 500 stocks managed to close higher. Heavyweights Reliance Industries and ICICI Bank reported third-quarter earnings below estimates over the weekend.