India Stocks Slide as Fed Warning Adds to Economic Gloom

In this article

India stocks tracked regional peers lower, with the benchmark gauge set for its longest string of losses since March, as warnings from the Federal Reserve added to a gloomy domestic economic outlook.

The S&P BSE Sensex declined 1.1% to 37,249.56 as of 9:44 a.m. in Mumbai. The NSE Nifty 50 Index fell by the same magnitude, while the regional MSCI Asia Pacific Index also lost more than 1%. Volatility on the local gauges may be elevated due to the expiry of derivative contracts later today.

The Fed’s warnings of the need for more stimulus in the world’s largest economy added to jitters as India’s equities head for their worst month in four as coronavirus cases increased to the second-highest globally and amid the prospect of an historic domestic economic contraction.

“There are no major positives to cheer about, and at the same time there is speculation about the possibility of fresh phases of lockdown which would push back the entire process of recovery,” said Ajit Mishra, an analyst at Religare Broking Ltd. in Mumbai.

Read: End of Loan Holiday Threatens Pain, Defaults for Indian Business

The Numbers

  • All 19 sector sub-indexes compiled by BSE Ltd. fell, led by a gauge of real estate companies
  • Reliance Industries Ltd. contributed most to the Sensex decline with a 1% drop, Bajaj Finance Ltd. declined the most, sinking 3.1%; Power Grid Corporation of India Ltd. was the sole constituent to rise, adding 0.4%

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