India Stocks Fall in Volatile Trade Amid Dim Economic Outlook

(Bloomberg) -- Indian stocks declined in volatile trading as investors weighed the worsening economic outlook with the novel coronavirus continuing to spread.

The S&P BSE Sensex fell 0.1% to 34,842.10 in Mumbai, while the NSE Nifty 50 Index dropped 0.2% after flipping between gains and losses. The measures are both set for their best quarter since 2009 and only their second month of gains this year. Volatility was heightened due to the expiry of futures contracts today.

“The near-term pressure from rising coronavirus cases and slowing global growth will weigh on the market,” said Anita Gandhi, an investment adviser at Arihant Capital Markets Ltd. in Mumbai.

India’s slower-than-expected recovery from a prolonged lockdown prompted the International Monetary Fund to deliver the steepest gross domestic product downgrade in projections of the world’s main economies. Reported novel coronavirus cases are the fourth-highest in the world and continue to climb.

The rupee strengthened 0.1% to 75.6687 versus the U.S. dollar, while the yield on the most-traded 6.45% 2029 government bond fell 4 basis points to 6%.

The Numbers

• Thirteen of 19 sector sub-indexes compiled by BSE Ltd. slipped, led by a gauge of information technology companies.
  • Infosys Ltd. contributed the most to the Sensex decline, while Asian Paints Ltd.’s 3.3% drop was the steepest.
  • ITC Ltd. was the biggest boost and gained the most, adding 5.5%.

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