BENGALURU, Sept 28 (Reuters) - Indian shares fell on
Wednesday to hover around two-month lows, weighed by banks and
energy companies, as risk sentiment weakened over worries of a
The NSE Nifty 50 index fell 0.4% to 16,940 as of
0503 GMT, while the S&P BSE Sensex was down 0.45% to
Asian share markets slid on Wednesday as surging borrowing
costs fed fears of a global recession, spooking investors into
the arms of the safe-haven dollar.
With rising interest rates and bond yields, the investment
barrier for equities has risen, said Siddhartha Khemka, head of
retail research at Motilal Oswal Financial Services.
Meanwhile, the fear of recession due to very high interest
rates is adding pressure, he said.
"While India has been sharply outperforming (global
markets), it is not immune to global risks and now there is a
bit of catching up, with foreign investors turning huge
sellers," Khemka said.
Foreign institutional investors sold a net 28.24 billion
Indian rupees ($345.63 million) of Indian equities on Tuesday,
while domestic investors purchased 35.05 billion rupees shares,
as per provisional data available with the National Stock
"Indian equities have shown resilience relative to most of
advanced and emerging market peers ... Notably, retail
participation continues to increase," State Bank of Indias
economic research department said in a note.
The Nifty and Sensex are down over 2% so far this year.
Meanwhile, investors are awaiting monetary policy decision
from the Reserve Bank of India, which begins its three-day
policy meeting Wednesday.
Ahead of the big RBI event, markets will take precautionary
positions, Khemka added.
The metals index was down 0.6%, while the energy
index fell 1%.
Sun Pharmaceutical industries was the top Nifty 50
gainer, rising 2%, while Oil & Natural Gas Corp the
top loser, falling 2.3%.
($1 = 81.7050 Indian rupees)
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Savio
D'Souza and Dhanya Ann Thoppil)