India Stocks Fall as Fresh Trump Trade Angst Routs Asian Markets
(Bloomberg) -- Indian equities joined Monday’s sell-off across risk assets amid worries that a fresh spat between the U.S. and China may delay the widely-anticipated trade truce between the world’s two biggest economies.
The S&P BSE Sensex declined 0.9 percent to 38,600.34 at the close in Mumbai, falling for a fourth consecutive session, its longest losing streak since February. The NSE Nifty 50 Index also fell 1 percent. Talks between the U.S. and China to resolve their year-long trade standoff appeared to be on life-support Monday, with Beijing struggling to respond to a pair of tweets by President Donald Trump that threaten an escalation of tariffs by the end of the week.
Investors are also assessing polling in national election that ends on May 19 and the quality of earnings in the quarterly results season. Net income at 8 of the 14 Nifty companies that have reported so far have either beaten or matched analyst estimates, data compiled by Bloomberg showed.
- India stocks will get hurt due to the global sell-off but to a “much less degree” as the nation is a closed economy, Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd. in Sydney said. India might become “a place to hide in emerging markets” after 5 percent to 7 percent decline, he said.
- Seventeen of the 19 sector indexes compiled by BSE Ltd. declined, led by gauges of consumer durables and metals stocks.
- Twenty six of the 31 Sensex members declined, while 39 of the 50 Nifty companies slipped.
- Tata Motors Ltd., which received 80 percent of its annual revenue from abroad last year, was among the top loser on the benchmark gauge.
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