India’s two key indexes, the S&P BSE Sensex and the NSE Nifty 50, started the week on a negative note. The S&P BSE Sensex dropped 0.18% to end at 39,123. The Nifty 50 closed 0.21% lower. Both the indexes gained during the early trading session but remained choppy thereafter.
Infosys (INFY) lost 0.68% on the BSE, while Wipro (WIT) lost 0.66%. Both these companies’ ADRs trade on the NYSE. Expect the ADRs to be under pressure when the US market opens today. On Friday, most major India-focused ETFs ended in the red. The iShares MSCI India ETF (INDA) led the pack with an 0.88% loss followed by the iShares India 50 ETF (INDY), which lost 0.71%. Both these ETFs hold Infosys (INFY) and Wipro (WIT).
The news that Viral Acharya, one of the deputy governors of the Reserve Bank of India, resigned led to selling pressure after the initial gain. Acharya’s resignation six months ahead of the end of term may be considered a loss of independence at India’s central bank. He was a hawk and a vocal critic of the government’s economic policies. His departure may see more accommodative policy by India’s central bank.
Indonesia’s Jakarta Composite posted a 0.43% loss, its third straight loss. The Taiwan Weighted Index lost 0.23%. Thailand’s SET Composite Index remained steady today.