1. Indian markets trade lower, dragged down by weakness in finance stocks

Indian markets trade lower, dragged down by weakness in finance stocks

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1 min read • Updated: January 30, 2024, 12:15 PM

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Summary

The markets are weighed down by financials after Bajaj Finance's asset quality worsened in the December quarter.

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The blue-chip NSE Nifty 50 index was down 0.11% and the S&P BSE Sensex fell 0.3%.

Bengaluru, 30 January: Indian shares fell on Tuesday, following a sharp surge in the previous session, weighed down by financials after Bajaj Finance's asset quality worsened in the December quarter.

The blue-chip NSE Nifty 50 index was down 0.11% and the S&P BSE Sensex fell 0.3%.

Meanwhile, the Indian government is due to announce the federal budget on Thursday.

The highest weighted of the 13 major sectors, financial services dropped 0.4%.

Bajaj Finance lost about 5% to hit a five-month low and was the top Nifty 50 loser. The company posted a smaller-than-expected rise in quarterly profit, while its asset quality deteriorated. Experts said that given the asset quality deterioration, credit cost is likely to remain elevated in the near term.

Information technology stocks are up 0.8% ahead of U.S. Federal Reserve rate decision and commentary, due on Wednesday.

The Fed commentary will provide cues into rate trajectory, and influence U.S. Treasury yields and foreign investor strategy.

Oil and gas index gained 1.5%, led by 3% rise Bharat Petroleum Corporation. The state-run oil marketing company reported higher-than-expected December quarter profit, helped by strong refining and marketing margins, during market hours on Monday, triggering a 3.85% jump.

(Inputs from Reuters)