BENGALURU, Sept 4 (Reuters) - Indian shares fell on Friday after a selloff in high-flying technology stocks on Wall Street rippled across Asian markets, with conglomerate Reliance Industries Ltd and financial stocks also weighing on the main indexes.
The selloff was broad based, with almost all major sector indexes trading lower. By 0454 GMT, the blue-chip NSE Nifty 50 index fell 1.12% to 11,398.60, while the S&P BSE Sensex slid 1.21% to 38,520.53.
Broader Asian stock markets saw their worst session in two weeks after Wall Street’s main indexes marked their steepest losses since June on the back of a tech-led plunge.
Indian stocks are on track for a weekly loss after two weeks of gains. They have rallied more than 50% since a virus-led crash in March, as huge flows of cheap capital provided by global central banks made heavily discounted stocks attractive.
The Nifty bank index fell 1.94% after India’s top court on Thursday directed banks not to declare any loans that were standard as of end-August as non-performing until further orders, raising uncertainty over recovery efforts.
The court is set to continue hearing a case on waiving interest rates on loans under a moratorium on September 10.
HDFC Bank Ltd was among the top drags on the Nifty, falling as much as 2.1%.
“The banking industry will have to assess its individual balance sheet dynamics and ultimately wait for clarity from the court order,” said Mayuresh Joshi, head of equity research at William O’Neil & Co.
India’s most valuable company, Reliance Industries Ltd , was another major drag on the Nifty with a 1.7% decline.
Automaker Maruti Suzuki India Ltd provided some support to the index with a 1.9% gain. (Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Saumyadeb Chakrabarty)
Our Standards: The Thomson Reuters Trust Principles.