Indian stocks fall for second consecutive session, metals and banks lag

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BENGALURU — India’s Nifty 50 and BSE Sensex indices fell more than 1% for the second straight session on Monday, dragged lower by metals and banks as global market weakness weighed further on sentiment.

The NSE Nifty 50 index closed down 1.51% at 17,490.7, while the S&P BSE Sensex fell 1.46% at 58,773.87.

Global equities fell as most central banks expected rates to tighten, while a slight easing from China only served to highlight problems in its housing market.

Back home, analysts said investors posted profits after strong gains this month in the Nifty 50 index of 4.6% and 4.7% in the BSE Sensex through August 18 .

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Earlier in the session, metal stocks plunged, with the Nifty Metal Index falling 3.2%, posting its biggest percentage loss since June 22. Tata Steel fell 4.5%.

The Nifty Bank index fell 1.8%, with Punjab National Bank and Kotak Mahindra Bank leading the decline with declines of 2.8% and 2.4% respectively.

The banking index had risen 5.8% this month through August 18.

There has been some relief in the financial markets thanks to foreign capital inflows.

Foreign institutional investors invested $5.6 billion in Indian stocks through August 19, compared to $618 million in July, the data showed.

Meanwhile, shares of fintech Paytm parent One97 Communications slashed gains to end up 0.5% after the company’s shareholders voted to reappoint Vijay Shekhar Sharma as chief executive. and CEO, despite calls for his ouster by an investor advisory firm.

Adani Power Ltd gained almost 5% after the company announced on Friday that it would buy thermal power station operator DB Power.

Only five stocks in the Nifty 50 index ended the session higher. (Reporting by Tanvi Mehta in Bengaluru, additional reporting by Gaurav Dogra; Editing by Dhanya Ann Thoppil and Neha Arora)