India Stocks Drop on Financial Sector Concern, Global Sell-Off

This post was originally published on this site

https://i-invdn-com.akamaized.net/content/pic30cca3d4cecdedbb4d34c548f1b90aef.jpg

(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 declined 0.5% to 38,106.87 as the 3:30 p.m. close in Mumbai, while the 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.

READ: India Shadow Banking Crisis May Return to Haunt Stock Market

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

Related Stories

  • India BPCL Divestment May Unlock Up to $25 Billion in Sector: MS
  • India’s Banking Woes Add to RBI Worries as It Moves to Cut Rates
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.