Indian stocks drop for a second day, tracking losses in Asia
India’s equity benchmark fell with regional peers, set for a second day of declines and just short of the unprecedented 50,000 level.
The S&P BSE Sensex slid 0.3% to 48,878.1 as of 9:50 a.m. in Mumbai, with three stocks falling for each one that rose. The NSE Nifty 50 Index declined by 0.4%.
One of the world’s largest inoculation drives kicked off on Saturday as India vaccinated 224,301 people in an effort to stem the coronavirus outbreak. About 10.6 million people have been infected with the disease in India, the world’s second-worst outbreak.
“Like global markets, India is overbought and we are waiting for a negative trigger,” said Deepak Jasani, head of retail research at HDFC Securities Ltd. The MSCI Asia Pacific Index was down 0.5% as the week began amid weakened risk appetite.
Foreign investors have bought $2.4 billion worth of Indian stocks this month through Jan. 14 after investing the most since 2012 last year, pushing the country’s key stock gauges to successive new highs in recent weeks.
All five of the Nifty 50 companies that have announced results so far have beaten estimates. HDFC Bank Ltd. rose 2% and topped gains on the Sensex, after India’s largest private lender by assets on Saturday reported strong loan growth and a drop in bad loans for its December-ending quarter.
- All but one of the 19 sector indexes compiled by BSE Ltd. slipped, led by a gauge of metal companies
- Housing Development Finance Corp. contributed the most to the Sensex decline, and decreased 1.3%, while Power Grid Corporation of India Ltd. had the largest drop, falling 2.5%.
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