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India’s Stocks Fall Second Day After Central Bank Rate Increase

India’s benchmark stock index fell for a second day after central bank Governor Duvvuri Subbarao increased interest rates for the seventh time since March and boosted his inflation forecast.

Mahindra & Mahindra Ltd., the nation’s largest maker of sport-utility vehicles and tractors, sank the most since November after its rating was lowered at Goldman Sachs Group Inc. Hindustan Unilever Ltd. fell to a four-month low. Food inflation held above 15 percent for a fourth week, a report showed today. That may have “spillover effects” and stoke broader price increases, the central bank said Jan. 25.