Indian Stocks Decline to One-Week Low Before Fed Decision
Indian (SENSEX) stocks headed for a one-week low as investors await the outcome of the two-day Federal Reserve meeting in the U.S.
The S&P BSE Sensex dropped 0.4 percent to 19,141.64 at 9:52 a.m. in Mumbai, poised for the lowest level since June 13. Infosys Ltd. (INFO) decreased for the first time in four days, leading its peers lower. State explorer Oil & Natural Gas Corp. (ONGC) headed for its lowest level in three months.
Fed Chairman Ben S. Bernanke will speak to reporters at the end of the meeting today. More than $2 trillion has been lost from global markets since May 22, when Bernanke signaled that the central bank may trim its asset-buying program that has boosted foreign inflows into emerging markets. India’s rupee dropped the most in a week yesterday, nearing a record low, while overseas funds sold the nation’s stocks for a fifth straight day on June 17.
The Sensex has slid 4.4 percent since Bernanke said the U.S. policy makers could scale back its stimulus program if employment showed sustainable improvement.
Overseas investors sold a net $18 million of Indian stocks on June 17, paring this year’s inflows to $14.9 billion. That’s still a record for the period, data compiled by Bloomberg show.
To contact the reporter on this story: Santanu Chakraborty in Mumbai at email@example.com
To contact the editor responsible for this story: Darren Boey at firstname.lastname@example.org