Indian shares edge lower; telecom stocks give up gains

  • 9/8/2021
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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 Investment Advisors. Bharti Airtel Ltd, which hit a record high earlier in the day, fell 0.69%. It had added 2.4% in the previous session. 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 1%. The Nifty IT index extended losses and was down 0.9% by 0809 GMT, while IT major Wipro was down nearly 2%. 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) Our Standards: The Thomson Reuters Trust Principles.

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