Indian shares fall as metals tumble; automobiles help cap losses

Monday,   23-May-2022   04:16 PM (IST)

Indian shares closed lower on Monday after a volatile session, weighed down by a sell-off in metal stocks after the government imposed heavy export taxes on steel products, while gains in automobile stocks helped cap some of the losses. The NSE Nifty 50 index was down 0.32% at 16,214.70 at close, while the S&P BSE Sensex fell 0.07% to 54,288.61. The Nifty Metal index, which saw its worst day since March 2020 in the session, settled 8.1% lower. JSW Steel and Tata Steel were the top losers on the Nifty 50 index, falling 13.2 and 12.6%, respectively. India on Saturday announced a series of changes to the tax structure levied on fuel and crucial commodities in a bid to help fight surging inflation. The country imposed an export tax of 15% on eight steel products at a time steelmakers are looking to make up for tepid local demand by increasing market share in Europe, whose supplies have been hit by Russia's invasion of Ukraine. However, Reserve Bank of India governor Shaktikanta Das told CNBC-TV18 in an interview on Monday that the Indian government would likely stick to its fiscal deficit target as specified in the budget and there may not necessarily be a need for increasing government borrowing just yet. The Nifty Auto index rose 1.8%, as automakers stand to benefit from lower input costs following the tax changes. Maruti Suzuki India and Mahindra and Mahindra were the top gainers on the Nifty 50, rising 4% each. Among individual stock moves, Divi's Laboratories and TTK Healthcare Ltd fell 9.5% and 10.5%, respectively, after their quarterly results.