India Stocks Retreat From Record Ahead of Economic Growth Report

Ronojoy Mazumdar

01 Dec 2019, 04:16 PM IST

(Bloomberg) -- India stocks fell, retreating from a third record-high close this week, ahead of a report due later Friday that’s expected to show the economy expanded at the slowest pace in more than six years.

The S&P BSE Sensex Index declined 0.8% to 40,793.81 at the 3:30 p.m. close in Mumbai. The measure marked a third straight month of gains, the longest such streak since May. The NSE Nifty 50 Index also lost 0.8% Friday.

Asia’s third-biggest economy probably grew 4.5% in the three months through September, according to economists in a Bloomberg survey. Among measures in recent months aimed at reversing the slowdown, the government has cut taxes and plans to set aside funds to help troubled industries, while the central bank is expected to deliver another rate cut on Dec. 5 to help bolster liquidity.

Strategist View

“Stocks could fall if GDP growth comes in below 5%,” said Sanjiv Bhasin, an analyst at IIFL Securities Ltd. in Mumbai. “The series of new highs that have been set recently mean that investors will buy into any decline very quickly.”

The Numbers

Fifteen of 19 sector sub-indexes compiled by BSE Ltd. fell, led by a gauge of metal companies.
Twenty-seven of 31 Sensex shares dropped, while four gained.
Reliance Industries Ltd. contributed the most to the index decline, with a 1.8% fall; Tata Motors Ltd. was the biggest loser, slipping 2.8%; Bharti Airtel Ltd. added 1.3% and was the biggest gainer.

India Stocks Retreat From Record Ahead of Economic Growth Report