July 29, 2020 / 5:37 AM / 7 days ago

Indian shares fall as Reliance, IT stocks drag on profit taking after rally

* NSE index slips 0.4%, BSE index falls 0.5%

* Reliance falls 1.5%

* IT index down 0.8%

By Derek Francis

BENGALURU, July 29 (Reuters) - Indian shares edged lower on Wednesday as investors took profits in the country’s most valuable stock Reliance Industries after an eight-day rally, while the IT sector added to the losses.

The NSE Nifty 50 index fell 0.4% to 11,256.8 and the S&P BSE Sensex was down 0.5% at 38,286.75 by 0507 GMT.

Oil-to-telecoms conglomerate Reliance’s shares fell about 1.5% after eight days of gains, that pushed the company’s market capitalization to more than 13 trillion rupees ($173.82 billion).

“Reliance has seen a good run and many people on the Street were expecting a correction,” said Saurabh Jain, assistant vice president at SMC Global Securities in New Delhi.

“Corrections will happen but the broader view is still positive.”

Reliance dragged the Nifty energy index down 0.4%, with refiner Bharat Petroleum also falling 1.3%.

Reuters reported, citing company officials, that Indian refiners are cutting crude processing and shutting units for maintenance as local fuel demand falls and global refining margins are weak.

Wall Street also fell overnight as investors fretted over an impasse in the U.S. Senate over a $1 trillion aid proposal from Senate Republicans announced on Monday.

However, Asian shares rose on Wednesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan gaining 0.3%, ahead of a key meeting by the U.S. Federal Reserve

The Fed’s announcement that it would extend several of its lending facilities through the year-end added to investor anticipation of a particularly dovish tone.

In Mumbai, the Nifty IT index dropped 0.8%, after gaining for three days in a row. Tech Mahindra and HCL Technologies led losses, falling 1.7% and about 1.4%, respectively.

Food and beverage giant Nestle topped the laggards on Nifty, after the company reported a marginal rise in profit for the June quarter.

Indusind Bank rose as much as 4.4% and was the top Nifty gainer, after the lender announced a fund raise, following a quarterly profit slump. (Reporting by Derek Francis in Bengaluru; Editing by Rashmi Aich)

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