India Stocks Drop on Financial Sector Concern, Global Sell-Off
The S&P BSE Sensex declined 0.5 percent to 3,8107.09 as of 10:10 a.m. in Mumbai.
(Bloomberg) -- Indian stocks declined amid a global sell-off on deepening concerns over an economic slowdown and domestic worries about the health of the financial sector.
The S&P BSE Sensex declined 0.5% to 38,106.87 as the 3:30 p.m. close in Mumbai, while the NSE Nifty 50 Index slid 0.4%.
Renewed doubts about debt and the availability of liquidity for non-bank lenders have helped spark a bearish turn in the market. With investors expecting more defaults among mid-sized companies, local stocks are starting to give up gains made after surprise corporate tax cuts two weeks ago.
Strategist View
“This is the classic crisis of confidence,” Jefferies analysts led by Nilanjan Karfa wrote in a note, “We are reaching a point wherein the Reserve Bank of India needs to move decisively to try and restore faith as a lender of last resort.”
The Numbers
- Twelve of 19 sector sub-indexes compiled by BSE Ltd. fell, led by a gauge of metal stocks.
- HDFC Bank Ltd. contributed most to the index decline with a 2% fall, while Vedanta Ltd. was the worst performer on the Sensex, dropping 4.7%; ITC Ltd. provided the biggest boost to the index, advancing 2.2%, while Yes Bank Ltd. was the best performer, surging 33% after a recent slump
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To contact the reporter on this story: Ronojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Kurt Schussler
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