Indian Stocks Snap Six-Day Rally Amid U.S. Budget Concern
Indian stocks fell for the first time in seven days after the re-election of U.S. President Barack Obama set up a budget confrontation with Republicans.
The BSE India Sensitive Index (SENSEX), or Sensex, lost 0.4 percent to 18,835.43, according to preliminary closing prices as of 3:30 p.m. in Mumbai. It rose 2.6 percent in the past six days. Infosys Ltd. (INFO), the software exporter that got 64 percent of its revenue from North America in the year ended March, led its peers lower. Tata Power Co. (TPWR), the largest non-state generator, slumped for a second day after posting a surprise loss.
The MSCI All-Country World Index (MXWD) declined 0.3 percent, extending yesterday’s 1.5 percent slump, amid concerns Obama now faces negotiating with Congress to avoid the so-called fiscal cliff of more than $600 billion in tax increases and spending cuts next year that threaten to slow U.S. growth, hurting the outlook for Asian exporters.
To contact the reporter on this story: Shikhar Balwani in Mumbai at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com