BENGALURU, Sept 8 (Reuters) - Indian shares lost ground on
Wednesday dragged lower by Reliance Industries and
Wipro, while telecom stocks gave up gains after a
source said the cabinet did not consider certain relief measures
for the sector.
The blue-chip NSE Nifty 50 index fell as much as
0.62% to 17,254.20 and the benchmark S&P BSE Sensex was
down 0.61% at 57,924.80.
Both indexes were largely unchanged for most of the morning,
and telecom stocks were previously up on expectations the
country's telecom department would propose measures to support
the debt-laden sector.
According to a report in the Economic Times, the proposals
were to be presented to the cabinet for approval on Wednesday.
However, India's federal cabinet on Wednesday did not take
up the proposals for providing financial relief to the country's
telecom sector, a government source said.
"I think the expectation was too high on the relief
proposals for the telecom sector, stocks had run up already
before the news," said Samrat Dasgupta, CEO of Esquire Capital
Bharti Airtel Ltd, which hit a record high earlier
in the day, fell 0.69%. It had added 2.4% in the previous
Vodafone Idea Ltd, which rose 7.9% earlier on
Wednesday and had gained for the last six sessions, fell 4.9%.
Reliance Industries, which runs telecom operator Reliance
Jio Infocomm, snapped five sessions of gains and was down over
The Nifty IT index extended losses and was down
0.9% by 0809 GMT, while IT major Wipro was down nearly
The Nifty Auto index fell 0.7% and carmaker
Maruti Suzuki India was down 1.4%% after reporting an
8.2% drop in production in August.
(Reporting by Chandini Monnappa; Additional reporting by Rama
Venkat; Editing by Shounak Dasgupta)