Indian stocks declined for a fourth day amid concern a global economic slowdown will hurt company earnings.
Tata Consultancy Services Ltd. (TCS) and Infosys Ltd. (INFO), the two biggest software exporters, tumbled more than 2 percent each after Goldman Sachs Group Inc. trimmed the global technology spending forecast to 3 percent from 4 percent earlier. The two companies get more than 90 percent of their sales from abroad. Larsen & Toubro Ltd. (LT), the largest engineering company, fell 1.6 percent. The BSE India Sensitive Index (SENSEX), or Sensex, retreated 0.7 percent to 17,097.68 at 3:15 p.m. in Mumbai.
The Sensex last week fell for the first time in six weeks and the MSCI Asia-Pacific excluding Japan Index had the largest weekly loss since May amid concern slowing growth from China to South Korea and Australia will hurt corporate profits.
India’s inflation unexpectedly eased in June while staying above 7 percent for a fifth straight month, indicating price pressures may limit room to join a monetary stimulus drive stretching from China to Europe.
The benchmark wholesale-price index rose 7.25 percent from a year ago, after climbing 7.55 percent in May, the Commerce Ministry said in a statement in New Delhi today. The median of 36 estimates in a Bloomberg News survey was 7.61 percent.
India’s monsoon, which accounts for more than 70 percent of annual rains, was 23 percent below a 50-year average this season, data from the weather bureau show, threatening to fuel food costs. Showers in July, the wettest month in the June- September season, may be less than forecast, the bureau said today.
Overseas funds were net buyers of domestic stocks for a ninth day on July 12, the longest string of purchases since the 10 days through March 23, data from the market regulator show. They have purchased a net $9.8 billion in Indian equities this year, a record for the period and the biggest inflow among 11 Asian markets tracked by Bloomberg.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com