Domestic markets slip as virus fears persist; banks, financial stocks drag

Indian shares ticked lower on Tuesday led by losses in banking and financial stocks, as domestic coronavirus cases continued to surge, while a weak performance among Asian peers also weighed on the sentiment.

The broader NSE Nifty 50 index fell 0.68{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} at 10,729.75 by 9:15 am and the benchmark S&P BSE Sensex was down 0.74{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} at 36,423.79.

Coronavirus cases in the world’s second-most populous country rose to 906,752 as of Tuesday morning, according to the federal health ministry data, leaving investors concerned about its impact on the Indian economy as many states and cities tighten restrictions again.

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Asian shares slipped on simmering Sino-U.S. tensions and persistent coronavirus concerns among investors.

In Mumbai, banking and financial fell further after a Moody’s report on Monday warned on COVID-19 related headwinds to Indian banking, which is already facing a high number of bad debt and a loan repayment moratorium which threatens to hurt revenue.

The Nifty banking index fell 1.6{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} and the financials index shed 1.5{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} in early Tuesday trading.

Among stocks, HDFC Bank and Axis Bank were the top losers, dropping 1.63{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} and 1.17{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58}, respectively.

Wipro Ltd was the session’s top gainer, advancing 1.36{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58}, ahead of its quarterly earnings report scheduled for later in the evening.

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