Indian Stocks Erase Year’s Gain After Seven-Day Losing Streakby
Sensex declines 1% to close at lowest level in a month
Benchmark gauge’s losing run is the longest since March 2015
Indian stocks fell for a seventh-straight day and the benchmark Sensex erased this year’s gain as uncertainty persisted over prospects for economic growth and corporate profits.
The 30-member Sensex has fallen 5.8 percent since Nov. 8, when authorities banned existing high-denomination currency bills and raised concern over an economic slowdown. Overseas investors have sold $250 million of local shares this month, adding to November’s $2.6 billion outflow.
|Index||Change (%)||Size and Scope|
|BSE Sensex||-1%||Longest losing run since March 2015|
|BSE MidCap||-1.5%||Drops ninth day|
|BSE Metal||-2.8%||Steepest in a month|
“There’s a lot of negative sentiment as investors see no clarity about economic and earnings growth,” said Neil Parikh, chairman and chief executive officer at Parag Parikh Financial Advisory Services Pvt. in Mumbai. They will “wait and watch” until the federal budget is presented in February, he said.
India’s gross domestic product is forecast to expand 6.5 percent in the three months ending Dec. 31 from a year earlier, according to the median estimate in a Bloomberg survey. That’s down from 7.3 percent in the September quarter.
- The Sensex is headed for a second straight annual decline, poised for the first back-to-back losses since 2001
- The NSE Nifty 50 Index closed below the 8,000 level for the first time in almost four weeks
- Reliance Communications -4.1% after jumping 6.7% Wednesday; the mobile phone operator, that agreed to sell its tower business, remains under review for downgrade, Moody’s said
- Hindalco Industries -4.5%, Vedanta -4.2% and Jindal Steel & Power -4.1% lead a decline in metal stocks
- The S&P BSE Metal Index is the worst performer among the 13 sector indexes compiled by BSE