Indian shares edged lower after hitting fresh highs earlier on Wednesday, as political turmoil in Washington spooked global investors, sending Asian markets lower.
U.S. share futures and the dollar tumbled on reports that President Donald Trump had asked then-FBI Director James Comey to end a probe into Trump’s former national security adviser, raising questions over whether obstruction of justice charges could be laid against the U.S. President.
Analysts also warned about near-term corrections in Indian markets after a remarkable run. Since crossing the 9,000-mark on March 14, the broader NSE Nifty has risen around 5.7% in just over two months and is the biggest gaining Asian index so far this year as of Tuesday’s close.
“Since the markets are trading at record high levels, there could be some nervousness creeping in and that’s why volumes are low,” said Siddhartha Khemka, head of research at Centrum Wealth.
“I see an upside to the market this week but over the next month there could be some correction and that will depend on quarterly corporate results.”
The NSE Nifty was down 0.1% at 9,501.95 as of 0600 GMT after earlier rising as much as 0.09% to a record high of 9,521.
The benchmark BSE Sensex was 0.01% lower at 30,580.89 after earlier rising as much as 0.20% to a life high of 30642.94.
Among individual gainers, Tata Steel Ltd rose as much as 6.8% after the company’s quarterly loss narrowed and after agreeing the main terms of a deal for a pension scheme for its British workers.
Meanwhile, Dhanlaxmi Bank Ltd soared to its highest since December 2014 after posting a profit in its March quarter from a loss a year ago.
Among the decliners, Andhra Bank Ltd fell as much as 4.9% after reporting a 32% drop in profit for March quarter.