Indian shares track broader Asia lower, data breach report drags Dr Reddy's

Indian shares track broader Asia lower, data breach report drags Dr Reddy's

22 Oct 2020 11:44 AM
 

Indian shares tracked broader Asia lower on Thursday, as global investors fretted over a setback to U.S. stimulus talks, while Dr.Reddy's Laboratories hit a five-week low following a report that a data breach prompted the drugmaker to shut key plants.

The NSE Nifty 50 index fell 0.44% to 11,885.50 by 10:27 am, while the S&P BSE Sensex was down 0.4% at 40,542.74.

Investor sentiment was dented globally as talks over a U.S. coronavirus aid bill faced a setback after President Donald Trump accused Democrats of being unwilling to craft an acceptable compromise on stimulus, following reports of progress earlier in the day.

Meanwhile, a Reuters poll signalled that a recent stimulus to boost demand by $10 billion in India, one of the hardest-hit nations by the pandemic, would not be enough to significantly lift business activity, with economists forecasting the economy was set for a near double-digit contraction this fiscal year. 

The Reserve Bank of India, which has already rolled out several measures to shore up liquidity in the pandemic-ravaged market, will conduct on Thursday its first-ever open market operation in state development loans.