Indian Stocks Drop, Tracking Asia, on Global Slowdown Concerns
Indian stocks dropped, mirroring losses in Asia, on concerns a slowdown in China and the debt crisis in Europe will curb growth and hurt overseas investor demand for the nation’s equities.
State Bank of India (SBIN), the nation’s largest lender, slumped 2.7 percent. The MSCI Asia Pacific Index (MXAP) fell for a third day and headed for a one-month low. China car sales unexpectedly shrank for the first time in eight months while Alcoa Inc. said the nation’s slowing growth will cut global demand for aluminum. Power-equipment maker Bharat Heavy Electricals Ltd. (BHEL) retreated 2.1 percent.
The BSE India Sensitive Index (SENSEX), or Sensex, slid 0.9 percent to 18,620.54, according to preliminary closing prices at 3:30 p.m. in Mumbai, its lowest close since Sept. 27. Spain’s Prime Minister Mariano Rajoy is struggling to contain the country’s deficit as he meets with French President Francois Hollande in Paris today. The European Union is India’s largest trading partner, accounting for 17.2 percent of exports in the six months ended September 2011, according to the commerce ministry.
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