Indian equities dropped for a fourth day, with the rupee weakening the most in two months, as China’s move to devalue the yuan drove Asian stocks and currencies lower for a second day.
Hindalco Industries Ltd., an aluminum maker, paced losses among metalmakers. Coal India Ltd., the world’s top producer of the fuel, plunged the most in seven months before its results. Tata Motors Ltd., owner of Jaguar Land Rover, fell for a third day and ICICI Bank Ltd., the country’s biggest private lender, was set for a sixth day of declines.
The S&P BSE Sensex lost 0.3 percent to 27,790.62 at 10:49 a.m. in Mumbai. Emerging-market stocks sank to the lowest since 2011, taking losses from its September peak to 21 percent, and Standard & Poor’s 500 Index futures lost 0.5 percent. China’s yuan was set for its biggest two-day drop in two decades after the central bank cut its reference rate by a record 1.9 percent on Tuesday.
The rupee lost 0.5 percent to 64.2050 a dollar, matching its June 8 drop, according to prices from local banks compiled by Bloomberg. One-month implied volatility, a gauge of expected swings used to price options, rose 74 basis points to 6.34 percent, data compiled by Bloomberg show.
The government will release data on retail inflation and factory output later on Wednesday. Consumer prices may have risen 4.4 percent from a year ago in July, from 5.4 percent in June, according to the median estimate of 32 economists in a Bloomberg survey. Industrial production may have expanded 3.3 percent from a year ago in June, compared with 2.7 percent in May, according to the median estimate of 33 economists.
Reserve Bank of India Governor Raghuram Rajan left the key interest rate unchanged this month as he wants to ensure his inflation target of 6 percent by January isn’t at risk from surging food prices, a poor monsoon and a possible increase in U.S. interest rates.
Coal India will probably say first-quarter profit rose 2 percent to 41.2 billion rupees ($642 million), according to a Bloomberg survey of 26 analysts. The shares lost 3.3 percent, set for a six-day, 14 percent loss, the most since January 2014.
Tata Steel Ltd. climbed 1.8 percent. The company reported after market hours Tuesday that first-quarter profit more than doubled to 7.63 billion rupees.
Seventeen of the 27 Sensex companies, or 63 percent, that have posted June-quarter results have matched or beaten analyst estimates, compared with 40 percent in the March quarter.
Global investors bought a net $10.8 million of domestic stocks on Aug. 8, taking this year’s inflow to $7.37 billion.
The Sensex has gained 0.6 percent this year and trades at 15.4 times projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 11.