India’s Stocks Drop Most Among Major Indexes on Rate Increase

Indian stocks dropped the most among major indexes in the world after rate increases by the nation’s central bank exceeded economists’ estimates. The nation’s stocks listed in the U.S. also declined more than its BRIC peers.

Reserve Bank of India today raised rates by 0.5 percentage point, more than analysts’ forecast, and predicted inflation to remain at about 9 percent until September because of higher oil costs. An index tracking American depositary receipts of Indian companies by Bank of New York Mellon fell 2.8 percent to a six-week low as of 4 p.m. close in New York, exceeding losses of 2.1 percent for China’s ADRs, 1.3 percent for Russia and 2.1 percent for Brazil.