Indian shares drop over 1% as tech, banking stocks fall

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A general view of the Bombay Stock Exchange (BSE), after Sensex surpassed the 60,000 level for the first time, in Mumbai, India, September 24, 2021. REUTERS/Francis Mascarenhas

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BENGALURU, Sept 28 (Reuters) - Indian shares dropped more than 1% on Tuesday after three straight sessions of gains, weighed down by losses in tech stocks and private banks and concerns about China Evergrande Group's debt crisis.

The blue-chip NSE Nifty 50 index (.NSEI) fell 1.12% to 17,654.45 by 0752 GMT and the benchmark S&P BSE Sensex (.BSESN) lost 1.3% to 59,297.48 after trading flat earlier. The S&P BSE MidCap (.NIFMDCP100) and the S&P BSE SmallCap (.NIFSMCP100) indexes tracked their larger peers to slip nearly 1% each.

A downturn in global investor sentiment over the Evergrande (3333.HK) debt crisis also affected Indian markets, said Anita Gandhi, director at Arihant Capital Markets.

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Trading was volatile with the Nifty volatility index (.NIFVIX) jumping 2.7%. Ajit Mishra, Vice President of Research at Religare Broking, said volatility could continue as the festive and the earnings seasons kick in.

Tech stocks (.NIFTYIT) dropped more than 2% after Monday's 2.9% slump. Tech Mahindra (TEML.NS) fell over 3% to be among the biggest losers on the Nifty 50.

Telecom operator Bharti Airtel (BRTI.NS) lost over 4% and was the biggest loser on the benchmark index.

Private Banks (.NIFPVTBNK) dropped 1.5% after three consecutive sessions of gains, with IndusInd bank (INBK.NS) sliding 2.5%.

Energy stocks (.NIFTYENR) rose more than 2% to hit a record high, with Power Grid Corp (PGRD.NS) climbing over 4% to top the Nifty 50.

Real estate stocks (.NIFTYREAL) were down about 5% after five straight sessions of gains, with Oberoi Realty (OEBO.NS) sliding more than 7% to lead losses on the sub-index.

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Reporting by Soumyajit Saha in Bengaluru; Additional reporting by Vishwadha Chander; Editing by Subhranshu Sahu

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