Indian Stocks Decline Led by Banks, Vehicle Manufacturers
India’s benchmark index is set for the second week of gains aided by foreign inflows which are to be the biggest in 17 months.
(Bloomberg) -- India’s benchmark equity index fell, erasing its weekly gain, led by a decline in banks and auto stocks.
The S&P BSE Sensex dropped 1.1% to 37,877.34 in Mumbai, wiping out an advance of as much as 0.6% early in the session. It closed the week with a 0.4% loss. The NSE Nifty 50 Index slipped by a similar magnitude.
“Investors are concerned that the liquidity that had been aiding the gains may not be available,” said Vishal Wagh, head of research at Bonanza Portfolio Ltd. in Mumbai. “The market has overshot itself and the economic realities of a weak earnings outlook and weak demand are resurfacing.”
As earnings season continues, 27 of the 46 Nifty 50-member companies that have announced results so far have beaten or matched estimates. NTPC Ltd. posted results that beat estimates today, while Hindalco Industries Ltd.’s earnings missed expectations.
India’s death toll from Covid-19 has surpassed that of the U.K., pushing the nation to the No. 4 spot globally. Total confirmed cases of 2.4 million are the third-largest in the world, while new daily infections exceed those in both the U.S. and Brazil, the two biggest outbreaks in absolute terms.
The rupee weakened 0.1% to 74.9037 per U.S. dollar, while the yield on the 10-year bond rose 6 basis points to 5.96%.
The Numbers
- Sixteen of 19 sector sub-indexes compiled by BSE Ltd. declined led by a gauge of vehicle manufacturers
- HDFC Bank Ltd. contributed the most to the Sensex’s drop, decreasing 2.3%, while Axis Bank Ltd. slid the most, falling 2.8%
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