India In-Focus — Indian shares extend losses; Rupee falls to all-time low; Faulty battery cells behind e-scooter fire

MUMBAI: Indian shares extended losses and the rupee fell to an all-time low on Monday, after broader Asian stocks declined on investor worries that a tightening COVID-19 lockdown in Shanghai could hit global economic growth.

The NSE Nifty 50 index was down 1.45 percent at 16,172.50 as of 0358 GMT, with all its major sub-indexes in the negative territory, while the S&P BSE Sensex fell 1.48 percent to 54,026.20.

The Indian rupee tumbled to an all-time low of 77.42 against the dollar on Monday.

The benchmark indexes on Friday posted their worst week since November, declining for a fourth straight session, weighed down by a surprise interest rate hike by the Reserve Bank of India, foreign fund outflows and mixed corporate earnings.

Asian markets were lower on Monday as US stock futures fell on fears of more policy tightening from the Federal Reserve and a strict lockdown in Shanghai impacting global growth. 

Faulty battery cells and modules likely caused e-scooter fire in India

Faulty battery cells and modules have been identified as the leading cause of electric scooters catching fire in India in recent weeks, according to the findings of an initial federal investigation, two government sources told Reuters.

The probe looked into fire incidents involving three companies, including Ola Electric, which is backed by Japan’s SoftBank Group, and was the country’s top-selling e-scooter maker in April.

“In Ola’s case, the battery cells were found to be an issue as well as the battery management system,” said one of the sources, who has direct knowledge of the report.

In March, India launched an investigation over safety concerns after a spate of e-scooter fires, including one where a man and his daughter died when their e-bike “went up in flames.”

(With input from Reuters)