Indian stocks down as profit booking in financials overshadows trade deal optimism
The Nifty 50 fell 0.19% to 25,405.3 points and the BSE Sensex lost 0.2% to 83,239.47. Both benchmarks had risen around 0.5% intraday.
Financials, heaviest sector on the benchmarks, slipped 0.5%, falling for the fourth straight session on likely profit booking after hitting a record high on Friday, analysts said. The sectoral index fell 2.2% in four days, but is still up 13.7% for the year.
Seven of the 13 major sectors logged losses. The broader small-cap rose 0.3%, while mid-caps was flat.
'While the market is consolidating after the recent gains, the larger trend remains positive,' said Aamar Deo Singh, senior vice president at Angel One.
With the benchmarks up 15% between March and June, stretched valuations mean any further significant upside hinges on solid earnings delivery and a favourable trade deal with the U.S., two analysts said.
Indian shares dip as financials drag; HDB Financial gains 13.6% in debut trade
Asian shares inched higher, with MSCI's Asia ex-Japan index up 0.3%, after U.S. President Donald Trump announced a 20% tariff on Vietnamese exports under a new deal, fueling hopes of further trade breakthroughs.
U.S. and Indian trade negotiators were pushing on Wednesday to try to land a tariff-reducing deal, but some disagreements remained, Reuters reported citing sources.
Kotak Mahindra Bank fell 2% after Macquarie downgraded it to 'neutral' from 'outperform', citing high valuations at current levels following the stock's 19.1% year-to-date rally.
Investors await U.S. employment data for June, due later in the day, for clues on the Federal Reserve's future rate action.
Among individual stocks, Punjab National Bank dropped 3.2% after reporting slower loan growth in its June-quarter update. D-mart operator Avenue Supermarts lost 1% on moderation in its sales growth in its quarterly business update.
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