Indian shares fall as Union budget drags insurance cos; Adani Group stocks tumble

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Indian shares reversed earlier gains to close lower on Wednesday, led by a fall in insurance companies after the country's Union budget proposed to limit tax exemptions for insurance proceeds, while Adani Group shares tumbled.

tumbled 19.2% on a broader selloff in Adani Group firms, which has now swelled to $84 billion since the Hindenburg report.the government will spend 10 trillion rupees on longer-term capital expenditure in 2023/24, extending a strategy adopted to revive growth in the aftermath of the COVID crisis.

India's federal government cut down the fiscal deficit target to 5.9% of GDP in the next financial year, compared to 6.4% for the current fiscal year. "Running into the elections in little over a year, this budget implies that the government has decided to write the cheques earlier than people expected, which is a positive," said Atul Suri, chief executive at Marathon Trends PMS, and fund manager, Rare Enterprises.

Reporting by Bharath Rajeswaran and Nallur Sethuraman in Bengaluru; editing by Eileen Soreng, Savio D'Souza and Janane Venkatraman

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Financials lead Indian shares lower; Adani stocks, econ survey in focusIndian shares declined after a volatile opening on Tuesday, the final day of Adani Enterprises' mega secondary share sale and ahead of the country's annual pre-budget economic survey. Adani story touted heavily to catalyse broader shift from India to China. Two-fold objectives are to: (a) get weak investors to hand over bid-offer spread to market makers, and (b) to increase circulation for the financial press. Suckers will fall for it. Guaranteed.
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