Indian shares inch lower as US election uncertainty looms
Updates at 10:26 a.m. IST
By Bharath Rajeswaran
Nov 5 (Reuters) -Indian shares inched lower on Tuesday as investors avoided making big bets ahead ofthe U.S. presidential election and lacklustreearnings and sustained foreign outflows continued to weighon sentiment.
The NSE Nifty 50 .NSEI was down 0.11% at 23,973 points as of 10:26 a.m. IST, while the BSE Sensex .BSESN lost 0.13%to 78,699.5.
Both benchmarks fell about 1.25% each on Monday, their biggest single-day loss since Oct. 3.
Democrat Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls ahead of Tuesday's U.S. election. The winner will likely not be known for days after voting ends.
A Trump win could lead to lower corporate tax rates in the U.S., which is expected to boost spending and, in turn, benefitseveral equity sectors in India, while a Harris victory is seen as a sign of policy continuity, a neutral-to-mildly-positive outcome for Indian stocks, according to analysts.
With Indian markets already trading at elevated valuations, uncertainty over the U.S. elections has served as a key catalyst for the ongoing correction, said Vinit Bolinjkar, head of research at Ventura Securities.
Lacklustre earnings and sustained foreign selling have also weighedon domestic equities over the last five weeks, with theNifty 50 dropping 8.7% from record highs hiton Sept. 27.
Eight of the 13 major sectors declined on the day. The broader, more domestically focused small- .NIFSMCP100 and mid-caps .NIFMDCP100 dropped about 0.4%each.
Among individual stocks, Amara Raja Energy and Mobility AMAR.NS fell 4.2%after posting its slowest profit growth in a year in the Septemberquarter.
Gland Pharma GLAD.NS rose 10%, on course for its biggest single-daygain in 15 months, lifting the pharma index .NIPHARM 0.4%.
While the generic injectables maker posted a profit drop, its overallprofit margin was better-than-expected due to its diverse segmental mix, said Motilal Oswal Financial Services, which forecastan earnings recovery for the company infiscal year 2025-2027.
($1 = 84.1360 Indian rupees)
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy, Janane Venkatraman and Sonia Cheema
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