stockmarket

Most India Stocks Drop as Investors Weigh Risk of Slowing Growth



(Bloomberg) — Most India stocks dropped on concern that the country’s slowing economic growth outweighs the effect of policy efforts to boost demand and will be a drag on corporate earnings.

The S&P Index fell 0.2% to 40,746.55 as of 9:42 a.m. in Mumbai, retreating from a record-high close on Thursday. The NSE Nifty 50 Index also dropped by 0.2%. Equities are declining globally after U.S. President Donald Trump called for fresh tariffs on some countries.

India’s economic growth collapsed below 5% for the first time since 2013 in the three months through September. While that gives the central bank more reason to cut interest rates for a sixth time this year at its Dec. 5 meeting, Nomura Holdings Inc. has cautioned that constraints in getting credit into the economy may continue to crimp demand.

The Reserve Bank of India has lowered borrowing costs by the most of any Asian central bank this year, while the government has cut taxes and funded troubled industries in a bid to revive the economy.

Strategist View

The weakness in economic indicators is “likely to impact the investor sentiment,” Ajit Mishra, vice president of research at Religare Broking Ltd. wrote in a note on Monday. “All eyes will now be on RBI monetary policy for economic revival measures.”

The problems arising out of weak economic growth are “under-appreciated,” Credit Suisse (SIX:) Group AG’s strategist Neelkanth Mishra wrote in a note on Monday. The second-order effects of weak growth include affect on viability of loans, slower investments, tax collections and fiscal situation, Mishra added in the note.

The Numbers

  • Fourteen of 19 sector sub-indexes compiled by BSE Ltd. dropped, led by a gauge of metal companies.
  • Tata Steel Ltd. was among the top losers on the benchmark, while Bajaj Auto Ltd. rose the most after Edelweiss Capital Ltd. upgraded the stock to buy.

Related Stories

  • Steepest India Yield Curve in Nine Years is Set to Rise Further
  • Capital Curbs Stymie Foreign Investors Eager to Buy India Bonds
  • Most Valuable Indian Lender Sees Signs of Revival in Rural Areas
  • India Firms’ Revenue Growth Shrinks First Time in 4 Years: ICRA
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.