Indian Stocks Swing Between Gains, Losses on Reforms, Eur
Indian (SENSEX) stocks fell for the first time in 10 days before a meet today by Prime Minister Manmohan Singh’s biggest ally to decide whether to exit the government over last week’s decisions to allow more foreign investments.
The BSE India Sensitive Index, or Sensex, fell 0.3 percent to 18,494.31, according to preliminary closing prices at 3:30 p.m. in Mumbai. Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, fell for the first time in five days. ICICI Bank Ltd. (ICICIBC), the third-biggest lender by value, fell the most in two weeks.
India’s government raised on Sept. 13 diesel prices for the first time since July 2011 to reduce the subsidy burden, and followed it up by opening retail and aviation industries to foreigners. Trinamool Congress, the second-largest party in the alliance, vowed on Sept. 14 to take a “drastic step” if the policies aren’t abandoned in 72 hours.
The markets are closed tomorrow for a public holiday.
Singh’s efforts to implement policies to revive investment amid threats from Standard & Poor’s and Fitch Ratings to lower India’s rating have been derailed by opposition from members of his own coalition. Asia’s third-largest economy expanded 5.5 percent in the June quarter, near the slowest in three years. Growth could ease to 5 percent annually if the policy paralysis persists, Singh told to the Planning Commission on Sept. 15.
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