Indian Shares 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% at 10,729.75 by 0345 GMT and the benchmark S&P BSE Sensex was down 0.74% 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 https://www.mohfw.gov.in, leaving investors concerned about its impact on the Indian economy as many states and cities tighten restrictions again.

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% and the financials index shed 1.5% in early Tuesday trading.

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

Wipro Ltd was the session's top gainer, advancing 1.36%, ahead of its quarterly earnings report scheduled for later in the evening.

(Reuters)