Breaking News

Tweet TWEET

Indian Stocks Drop for Fifth Day on Inflation; ITC, Larse

Indian stocks dropped for a fifth day before a report tomorrow that may show inflation quickened last month, reducing the scope for the central bank to loosen monetary policy. Consumer-goods makers lead the declines.

The BSE India Sensitive Index (SENSEX), or Sensex, fell 0.8 percent to 19,208.92, according to preliminary closing prices. Cigarettes-to-hotels group ITC Ltd. (ITC) declined the most in three months after the stock’s “investability” weight was cut by FTSE in its global equity index series. Larsen & Toubro (LT), the biggest engineering company, slid to a two-week low. Hindustan Unilever Ltd. (HUVR) retreated for a second day.

Stocks declined yesterday as data showing consumer-price inflation quickened last month raised concern the central bank may not cut interest rates at a review next week. A report may show tomorrow the wholesale-price index for accelerated to 7.60 percent from 7.45 percent in October, according to a Bloomberg survey. The Reserve Bank of India will keep borrowing costs unchanged on Dec. 18, according to another Bloomberg survey.

Overseas funds were net buyers of local stocks for a 19th straight day on Dec. 11, taking their net purchases in 2012 to $21.4 billion, the most among 10 Asian markets tracked by Bloomberg, excluding China, data compiled by Bloomberg show.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.