US growth slowdown concerns hit Indian shares

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BENGALURU (Reuters) -India’s benchmark indexes settled lower on Wednesday, Sept. 4, as renewed worries about a slowdown in the United States hit global markets and shares of information technology companies.

The Nifty 50 index ended 0.32% lower at 25,198.7 points, while the S&P BSE Sensex fell 0.25% to 82,352.64.

Asian shares and global stock futures tumbled, led by a heavy decline in technology names and as worries about the global growth outlook drove investors out of risky assets.

Tepid U.S. manufacturing data spurred worries about a potential slowdown in the world’s largest economy, and weighed on Asian markets, which dropped 1.8%. [MKTS/GLOB]

A slew of U.S. economic data is due this week, including readings on job openings, jobless claims and the closely-watched nonfarm payrolls report on Friday.

“If upcoming U.S. economic data remains tepid, it will further weigh on domestic equities, but any adverse impact will be short-lived,” said Pratik Oswal, chief of passive business at Motilal Oswal Asset Management Company.

Indian equities should remain relatively resilient compared to other Asian and emerging market peers, due to the liquidity surplus and domestic-tilt across most sectors barring IT and pharmaceuticals, Oswal said.

Nine of the 13 major sectors logged losses while the broader and more domestically focused small-caps closed flat and mid-caps shed 0.1%.

Indian information technology companies, which earn a significant share of their revenues from the U.S., lost about 1%.

State-run Oil and Natural Gas Corp dropped 2.42% on block deals at a 2%-3% discount to its previous close.

Heavyweight financial indexes fell as much as 1.7%.

Paint manufacturers like Asian Paints, Indigo Paints and Kansai Nerolac gained due to a drop in crude oil prices.

Crude is a key raw material to make paints, solvents and resins. [O/R]

($1 = 83.9530 Indian rupees)