India’s Sensex Has Biggest Weekly Drop Since 2011 Amid Oil Rout

India’s benchmark stocks index had its worst week in three years as global equities fell on concern a plunge in oil will cool demand for emerging-market equities.

Gail India Ltd., the largest natural-gas supplier, fell for a seventh day today, the longest run of losses in a year. Oil & Natural Gas Corp., the biggest explorer, slid to its lowest level since May. Reliance Industries Ltd., owner of the world’s largest refining complex, decreased to an eight-month low. Tata Steel Ltd. posted its biggest losing run since March 2013.

The S&P BSE Sensex tumbled 0.9 percent to 27,350.68 at the close today, taking the loss for the past week to 3.9 percent. Emerging-market stocks have lost 14 percent from this year’s high in September as the rout in oil combined with speculation that U.S. interest rates will rise next year. Indian stocks and bonds may attract about $18 billion to $20 billion in 2015, versus this year’s inflows of $43 billion, amid waning risk appetite, according to Credit Suisse Group AG.

“The global commodity crisis has been playing havoc with emerging markets, and India will be affected by it,” Hemant Kanawala, head of equities at Kotak Mahindra Old Mutual Life Insurance Ltd., which has $2 billion in assets, told Bloomberg TV India today. “Surpluses generated by commodity-producing countries used to flow into emerging markets. As their balance sheets get impacted, the flows can get impacted.”

Foreigners sold a net $99 million of local shares on Dec. 11, a third straight day of outflows. That pared this year’s investments to $17.2 billion, still the highest in Asia after Japan, data compiled by Bloomberg show.

Gail, ONGC, Reliance

Gail India plunged 4.4 percent today to its lowest price since Aug. 13. Oil & Natural Gas retreated 3.5 percent to its lowest level since May 8. Reliance lost 2.6 percent, a seventh day of losses. Tata Steel dropped 3.8 percent.

The government will release consumer inflation and factory output data later today. Consumer prices probably rose to 4.4 percent in November, the least since the index was created in early 2012, as a result of falling oil prices, a Bloomberg survey shows.

Factory output expanded 2.5 percent from a year earlier in October, the same pace as the previous month, according to a separate survey. The reports were due after market hours today.

Oil extended losses below $60 a barrel in New York today and declined to a five-year low as the International Energy Agency cut its 2015 demand forecast for the fourth time in five months. Brent also dropped to the lowest in five years.

The Sensex has risen 29 percent this year and is valued at 15.1 times projected 12-month profits, versus the MSCI Emerging Markets Index’s multiple of 10.8.

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