Indian shares closed over 1% lower on Thursday, with financial and metal stocks falling the most, as markets remained wary of government’s measures to revive slowing economic growth.
The broader NSE Nifty ended 1.25% down at 10,704.80, while the benchmark BSE Sensex fell 1.29% to 36,093.47.
“There is a clear disappointment in the market. The government is showing intent to help, but that is not enough to calm down investors, said Saurabh Jain, assistant vice-president of research at SMC Global Securities in New Delhi.
“There is chaos and the benefit of doubt that markets were giving to the government that they may come to the rescue is not holding up.”
Indian markets have been hammered so far this week on concerns around surging crude prices and slowing economic growth, both at home and globally.
Yes Bank Ltd, which fell 15.76%, was the top decliner on the NSE index. The Nifty PSU bank index shed 2.25%, with all 12 constituents closing below 1%.
The Nifty Metals index settled 1.63% lower, with 13 out of 15 constituents finishing in the red.
Shares of lender Indiabulls Housing Finance Ltd fell as much as 9.06% to its lowest in nearly five years.
Meanwhile, only seven out of 50 stocks on the blue-chip index ended higher.