Indian shares fall on weak financials, global triggers

Credit: REUTERS/DANISH SIDDIQUI

Indian shares fell for a second straight session on Thursday, dragged by financials, as rising inflation rate, prolonged trade war and street protests in Hong Kong hurt risk appetite.

By Arnab Paul

June 13 (Reuters) - Indian shares fell for a second straight session on Thursday, dragged by financials, as rising inflation rate, prolonged trade war and street protests in Hong Kong hurt risk appetite.

Domestic markets tracked their broader Asian peers, which fell after massive street protests were reported in Hong Kong. Sentiment was also muted as hopes that United States and China will clinch a deal on the sidelines of a Group of 20 summit meeting faded. MKTS/GLOB

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell as much as 1%.

The broader NSE index .NSEI was down 0.55% at 11,841 as of 0531 GMT, while the benchmark BSE index .BSESN was 0.55% lower at 39,539.64.

The NSE cut below a support at 11,867.56 and could lead to further fall up to a support at 11,722.5, technical charts showed.

"The next downside levels to be watched at 11,800-11,820 in the next few sessions," said Nagaraj Shetti – senior technical & derivative analyst at HDFC Securities.

"One may expect further weakness in Nifty in the coming sessions."

On Tuesday, India's retail inflation rate INCPIY=ECI hit a seven-month high in May due to higher food prices, but stayed below the central bank's target, signalling potential interest rate cuts.

Annual retail inflation was 3.05%, up from the revised 2.99% in the previous month and above Reuters poll estimates of 3.01%.

Debt-laden Jet Airways Ltd JET.NS slumped as much as 18.3% to a record low a day after the National Stock Exchange of India (NSE) said contracts of the carrier would be pulled out of trading in the Futures and Options segment.

Yes Bank Ltd YESB.NS was the top percentage drag on the NSE index, falling 9.6% to its lowest in nearly four years. The private-sector lender has come under pressure after Moody's placed the bank's rating under review for downgrade earlier this week.

Shares of IndusInd Bank Ltd INBK.NS fell for a second session and were down 5.44%.

Among gainers, Bharat Petroleum Corp Ltd BPCL.NS rose 1.6% while Larsen & Toubro LART.NS climbed 1.1% higher.

(Reporting By Arnab Paul in Bengaluru; editing by Uttaresh.V)

((arnab.paul@thomsonreuters.com; +91 8067493881; Reuters Messaging: arnab.paul.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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