Bloomberg News

India's Sensex Ends Little Changed as Singh Ally Opposes

August 23, 2012

India’s benchmark stock index ended little changed as opposition from the government’s key ally to economic reforms outweighed optimism that global central banks may ease monetary policy to boost growth.

The BSE India Sensitive Index (SENSEX), or Sensex, gained less than 0.1 percent to 17,850.22 at the close. The measure earlier rose its highest in six months. Tata Consultancy Services Ltd. (TCS), the top software maker, increased to a record. Reliance Industries Ltd. (RIL), owner of the world’s largest refining complex, fell for a fourth day. Pantaloon Retail India Ltd. (PF) slid the most in two weeks after Mamata Banerjee, a key partner of Prime Minister Manmohan Singh’s ruling alliance, said her party is not in favor of allowing foreign direct investment in multi-brand retail and airline industries.

The Sensex has increased 16 percent this year, helped by surging overseas investor purchases amid optimism Singh will revive reforms to boost an economy expanding at the slowest pace in almost a decade. India’s budget and current-account deficits in June prompted Standard & Poor’s and Fitch Ratings to say they may strip the nation of its investment-grade rating.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at schakrabor11@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


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