Categories: Business

Reliance, Wipro weigh on Indian shares amid volatility spike ahead of Budget

People walk past the Bombay Stock Exchange (BSE) building in Mumbai.
| Photo Credit: Reuters

Indian shares opened lower on July 22, dragged by Reliance Industries and Wipro after both companies posted weaker-than-expected quarterly results, while volatility spiked a day before the Union Budget was due.

The NSE Nifty 50 fell 0.55% to 24,398.75, while the S&P BSE Sensex shed 0.47% to 80,220.7, as of 9:22 a.m. IST. All 13 sectors logged losses. The more domestically-focussed small- and mid-caps fell 1% and 0.7%, respectively.

Oil-to-telecom conglomerate Reliance, which reported first-quarter profit below analysts’ estimates on July 19 hurt by lower margins on fuel sales, lost 2.7%. Wipro, which missed quarterly revenue estimates due to weak demand in Europe and Asia-Pacific, lost 7.5%, becoming the top percentage loser on the Nifty 50 and information technology indexes.

Volatility rose to a six-week high of 15.5%, ahead of the budget.

HDFC Bank, the country’s top private lender and the heaviest stock in the Nifty 50, rose about 1% after beating quarterly profit forecasts on Saturday, as loan-loss provisions fell.

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