Nifty, Sensex track broader Asia lower on U.S. stimulus setback

A broker trades on his computer terminal at a stock brokerage firm in Mumbai, India, January 20, 2016. REUTERS/Shailesh Andrade/Files

BENGALURU (Reuters) – Indian shares opened lower on Thursday, dragged by financials, with broader Asian markets slipping as global investors fretted over a setback to U.S. stimulus talks.

The NSE Nifty 50 index .NSEI fell 0.43% to 11,886.20 by 0345 GMT, while the S&P BSE Sensex .BSESN was down 0.4% at 40,544.09.

Global investor sentiment took a fresh hit over talks to boost the world’s largest economy after U.S. President Donald Trump on Wednesday accused Democrats of being unwilling to craft an acceptable compromise on stimulus, following reports of progress earlier in the day.

Meanwhile, a Reuters poll forecast that the economy was set for a near double-digit contraction this fiscal year and that a recent stimulus would not be enough to significantly boost economic activity.

The Nifty Bank index .NSEBANK was down 0.8%, led by a 0.4%decline in shares of HDFC Bank HDBK.NS.

Shares of Aurobindo Pharma ARBN.NS slipped 2.1% after the drugmaker’s unit got a warning letter from the U.S. FDA for a manufacturing facility in New Jersey.

Reporting by Philip George in Bengaluru, Editing by Sherry Jacob-Phillips

source: reuters.com