Indian Stocks Retreat on Rising Oil Ahead of U.S. Fed MeetingBy and
Brent at 17-month high as producers agree to trim output
Autos, banks among worst performers; ONGC rises for third day
Indian stocks fell, with the benchmark gauge snapping a two-day gain, as a surge in oil prices raised concern that inflation will accelerate.
Brent crude climbed to near a 17-month high, threatening to raise import costs for India which gets about 80 percent of its oil from overseas. S&P BSE Sensex slid 0.9 percent at the close, the biggest loss in a week, ahead of the Federal Reserve’s two-day policy meeting starting Tuesday. The U.S. central bank is almost certain to raise interest rates.
|Index||Change||Size and Scope|
|BSE Oil Index||-1.1%||Most in a week|
|BSE Auto Index||-1.7%||Most in three weeks|
|BSE Bank Index||-1.7%||Lowest in week|
“There are multiple moving parts both external and domestic that are causing this disturbance and noise,” said Aneesh Srivastava, chief investment officer with IDBI Federal Life Insurance Co. Ltd. “Crude prices, volatile foreign policies are a few of the headwinds from overseas.”
- Automaker Bajaj Auto Ltd. dropped to a two-week low while Tata Motors Ltd. snapped last five sessions of gain, its longest winning streak since September, to decline 2.1 percent. State-run Punjab National Bank Ltd. and private-sector lender Axis Bank Ltd. were the worst performers among banking stocks.
- ONGC Ltd., the nation’s top oil producer, gained 1.5 percent to the highest level since July last year. The stock earlier climbed as much as 2.5 percent after non-OPEC countries including Russia pledged to pump less next year. Saudi Arabia said it will cut output more than previously agreed.
- Bajaj Finance Ltd. dropped 5.9 percent, the steepest loss in a month, after the non-bank lender said India’s decision to replace high-denomination currency bills will impact its loan collection.
- Maharashtra Seamless Ltd. climbed 5.8 percent, biggest advance in seven weeks. The stock earlier soared as much as 16 percent after the pipe-maker’s net income for the quarter through September jumped 10-fold from a year earlier as costs declined.