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


People walk past the Bombay Stock Exchange (BSE) building in Mumbai.

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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