US growth slowdown concerns hit Indian shares

Wednesday,   04-Sep-2024   04:18 PM (IST)

India's benchmark indexes settled lower 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%. 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. Nine of the 13 major sectors logged losses while the broader and more domestically focussed 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.