Indian Stocks Drop to 3-week Low on Inflation Data; HDFC Leads

Indian stocks declined to a near three-week low after wholesale prices gained more than estimated in November, likely limiting the central bank’s scope to halt this week its record series of interest-rate increases.

Housing Development Finance Corp. (HDFC), the country’s largest mortgage lender, fell to a near three-week low. Tata Steel Ltd. (TATA), the country’s biggest producer, fell 4.2 percent. Coal India Ltd. (COAL), the largest producer, declined to its lowest level in three weeks.

The BSE India Sensitive Index (SENSEX), or Sensex, fell 0.9 percent to 15,867.02, according to preliminary closing prices in Mumbai, after swinging between gains and losses six times. The trade ministry said inflation eased to 9.11 percent last month, the lowest in a year. Still, the figure was higher than the 9.06 percent median estimate in a Bloomberg News survey. Inflation has stayed at more than 9 percent for 12 straight months.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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