Indian stocks fall more than 1% due to lack of GDP and Ukraine crisis

A man reacts while looking at a screen displaying Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai, India, March 12, 2020. REUTERS/Francis Mascarenhas

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BENGALURU, March 2 (Reuters) – Indian stocks fell more than 1% on Wednesday after data showed the country’s economic growth fell short of estimates, while heightened uncertainty surrounding Ukraine and the surge crude oil prices kept investors on their toes.

The blue-chip NSE Nifty 50 index (.NSEI) fell 1.31% to 16,574.20, as of 0511 GMT, and the S&P BSE Sensex (.BSESN) fell 1.58% to 55,356, 94, as the markets resumed operations after a public holiday.

“Sentiment is currently bearish. Developments in the Russia-Ukraine crisis will be the main driver for markets today. Rising crude prices also add to the headwinds,” said Yesha Shah, head of research. on shares at Samco Securities. .

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India imports more than two-thirds of its oil needs and rising crude prices will accelerate domestic inflation while widening the country’s current account deficit.

For Nifty 50, there is resistance placed around 16,800 levels and until there is a clear break above this level, a cautious to bearish outlook should be maintained, Shah added.

The country’s economy grew 5.4% in the October-December quarter from a year earlier, data released after-hours market data showed Monday, missing economists’ forecast of 6% growth. . Read more

Oil prices rose above $110 a barrel on Wednesday, their highest level since early July 2014, as sanctions on Russian banks hampered trade finance for crude shipments.

Nifty’s metals index (.NIFTYMET) and energy index (.NIFTYENR) were among the best performers, up 4.4% and 0.8%, respectively.

Aluminum producer Hindalco Industries (HALC.NS) was the Nifty 50’s biggest gainer, rising 6.8% as commodity prices soared following the Ukraine crisis.

Coal India shares rose 6.5% after the miner noted Coal production in February stood at 64.3 million tonnes, an increase of 3.9% compared to the same period last year.

Mahindra and Mahindra (MAHM.NS) climbed more than 2% after the automaker noted February domestic passenger vehicle sales were 27,663 units, up 80% from a year ago.

Nifty’s financial services sector index (.NIFTYFIN), private banking index (.NIFPVTBNK) were among the biggest losers, slipping more than 2.5%.

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Reporting by Rama Venkat in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips

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