India Stocks Fall to Two-Month Low, Led by Tata Steel, Sterlite
July 13 (Bloomberg) -- Indian stocks fell to a two-month low, led by Tata Steel Ltd. and other metals producers after commodities prices fell and amid concerns that government measures to revive growth may not be enough.
Sterlite Industries India Ltd., the biggest copper producer, dropped 2.7 percent. Tata Steel, the largest manufacturer of the alloy, slid 2.8 percent. Hindalco Industries Ltd., the No. 1 aluminum producer, declined 2 percent.
"There is no positive trigger for the market," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. "Weak sentiment after last week's budget is spilling over to this week too." Finance Minister Pranab Mukherjee on July 6 unveiled the widest budget deficit in 16 years and failed to lay out firm plans to sell state-run assets.
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 205.35, or 1.5 percent, to 13,298.87 at 10:24 a.m. in Mumbai, extending a 9.5 percent slide last week, the biggest retreat since the week ended Oct. 26.
The S&P CNX Nifty Index on the National Stock Exchange also lost 1.2 percent to 3,957.9. The BSE 200 Index declined 1.3 percent to 1,628.13.
Sterlite lost 2.7 percent to 560.1 rupees. Tata Steel fell 2.8 percent to 343.15 rupees. Hindalco retreated 2 percent to 71.35 rupees. JSW Steel Ltd., India's third-biggest producer, fell 3.7 percent to 497.4 rupees. A measure of six metals traded on the London Metals Exchange, comprising copper, aluminum, lead, tin, zinc and nickel, fell 1.3 percent.
'As And When'
Mukherjee said July 11 the nation's central bank will act "as and when" needed on interest rates. "You cannot expect an omnibus reply, but as and when the situation will require appropriate action it will be taken," Mukherjee said at a press briefing after meeting central bank officials in New Delhi.
The MSCI Asia Pacific Index dropped 2.2 percent to a two- month low. The gauge has lost 5.9 percent from an eight-month high on June 12 as optimism for a global economic recovery eased. The index had risen as much as 49 percent from a five-year low on March 9.
Reliance Industries Ltd., India's most valuable company, declined 2 percent to 1,740 rupees. Jaiprakash Associates Ltd., the biggest maker of dams, fell 3 percent to 180.6 rupees. Larsen & Toubro Ltd., India's largest engineering company, slid 2.8 percent to 1,318 rupees.
Investor expectations for the budget were high after Prime Minister Manmohan Singh won a resounding re-election in May, reducing his dependence on allies such as the communist parties who opposed asset sales and looser foreign investment policies during his first term.
To contact the reporters on this story: Harichandan Arakali in Bangalore at harakali@bloomberg.net Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net .
July 13 (Bloomberg) -- Indian stocks fell to a two-month low, led by Tata Steel Ltd. and other metals producers after commodities prices fell and amid concerns that government measures to revive growth may not be enough.
Sterlite Industries India Ltd., the biggest copper producer, dropped 2.7 percent. Tata Steel, the largest manufacturer of the alloy, slid 2.8 percent. Hindalco Industries Ltd., the No. 1 aluminum producer, declined 2 percent.
"There is no positive trigger for the market," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. "Weak sentiment after last week's budget is spilling over to this week too." Finance Minister Pranab Mukherjee on July 6 unveiled the widest budget deficit in 16 years and failed to lay out firm plans to sell state-run assets.
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 205.35, or 1.5 percent, to 13,298.87 at 10:24 a.m. in Mumbai, extending a 9.5 percent slide last week, the biggest retreat since the week ended Oct. 26.
The S&P CNX Nifty Index on the National Stock Exchange also lost 1.2 percent to 3,957.9. The BSE 200 Index declined 1.3 percent to 1,628.13.
Sterlite lost 2.7 percent to 560.1 rupees. Tata Steel fell 2.8 percent to 343.15 rupees. Hindalco retreated 2 percent to 71.35 rupees. JSW Steel Ltd., India's third-biggest producer, fell 3.7 percent to 497.4 rupees. A measure of six metals traded on the London Metals Exchange, comprising copper, aluminum, lead, tin, zinc and nickel, fell 1.3 percent.
'As And When'
Mukherjee said July 11 the nation's central bank will act "as and when" needed on interest rates. "You cannot expect an omnibus reply, but as and when the situation will require appropriate action it will be taken," Mukherjee said at a press briefing after meeting central bank officials in New Delhi.
The MSCI Asia Pacific Index dropped 2.2 percent to a two- month low. The gauge has lost 5.9 percent from an eight-month high on June 12 as optimism for a global economic recovery eased. The index had risen as much as 49 percent from a five-year low on March 9.
Reliance Industries Ltd., India's most valuable company, declined 2 percent to 1,740 rupees. Jaiprakash Associates Ltd., the biggest maker of dams, fell 3 percent to 180.6 rupees. Larsen & Toubro Ltd., India's largest engineering company, slid 2.8 percent to 1,318 rupees.
Investor expectations for the budget were high after Prime Minister Manmohan Singh won a resounding re-election in May, reducing his dependence on allies such as the communist parties who opposed asset sales and looser foreign investment policies during his first term.
To contact the reporters on this story: Harichandan Arakali in Bangalore at harakali@bloomberg.net Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net .
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