India Stocks Decline as Lockdowns Resume in Some Locations
(Bloomberg) -- Indian stocks declined as investors weighed the prospect of a resumption in business against a continued increase in coronavirus infections that are triggering new lockdowns in some states.
The S&P BSE Sensex lost 1.8% to 36,033.06 in Mumbai, while the NSE Nifty 50 Index dropped by a similar magnitude. The Sensex index briefly breached its 200-day moving average on Monday, a level that flashes a sell signal to some investors, but has since fallen back below it.
“The coronavirus infections aren’t subsiding, which could slow the demand and economic recovery,” said Ajit Mishra, vice president of research at Religare Broking Ltd. in Mumbai.
While India’s economy is heading for its biggest contraction in four decades, price pressures are emerging as it exits a nationwide lockdown. With coronavirus cases in the country spiraling into the world’s third-largest outbreak, some cities in Maharashtra and Karnataka state are reimposing restrictions in an effort to curb the spread.
With the earnings season underway, Wipro Ltd. is scheduled to announce results after the market closes today, while Infosys Ltd. is due to report Wednesday. Tata Consultancy Services Ltd. was last week the first of the country’s giant IT services companies to give its numbers for the three months through June, when it posted profit below expectations.
The rupee weakened 0.3% to 75.43 per U.S. dollar. The yield on the 6.45% 2029 government bonds rose four basis points to 5.91%.
- Seventeen of 19 sector sub-indexes compiled by BSE Ltd. slipped, led by a gauge of banking companies
- Housing Development Finance Co. contributed most to the Sensex’s fall, Titan Co. Ltd. was the biggest winner, with a 0.8% gain; IndusInd Bank Ltd. was the biggest loser, dropping 5.3%
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