By Bharath Rajeswaran
(Reuters) -Indian shares dropped on Wednesday, weighed down by financials after a two-session rally, while sentiment remained weak due to persistent foreign selling and dull corporate earnings.
The NSE Nifty 50 shed 0.17% to 24,426.45 points as of 11:01 a.m. IST, while the BSE Sensex lost 0.2% to 80,207.75.
Market sentiment has been under pressure, as foreign institutional investors continue to sell aggressively, said Vikram Kasat, head of advisory at PL Capital.
The Nifty 50 has lost about 5.4% in October so far, and is on track for its worst monthly performance since March 2020, when lockdown-related restrictions triggered a meltdown across global equity markets.
The correction in October, also triggered by tepid earnings, indicates investor caution and lingering bearish sentiment, two analysts said.
Six of the 13 major sectors logged losses. Financials, which gained about 2.6% in the last two sessions and led markets higher, lost 1% on the day, leading sectoral losses.
Drug maker Cipla fell 4% and was the top loser by percentage on the Nifty 50. The stock has shed about 6% in two sessions despite reporting a quarterly profit beat during market hours on Tuesday.
Several brokerages cut their earnings estimates for Cipla for the fiscal years 2025 and 2026, citing a likely delay and uncertainty in launching key drugs, muted growth in the U.S., and an increase in operating costs.
Car maker Maruti Suzuki India, which fell 3.8% in the last session due to a revenue slowdown and profit drop in the September quarter, rose 2.2%.
The share move comes as the top carmaker by sales said it saw a 14% jump in its festive sales, while brokerages such as Kotak Institutional Equities and Emkay found its valuations attractive after the recent correction.
The carmaker’s shares have dropped about 15% in October so far, eyeing its worst monthly performance since March 2020.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips and Abinaya Vijayaraghavan)
