(Bloomberg) -- India’s stock benchmark declined as regional markets remained subdued, with disruptions from the coronavirus outbreak clouding the outlook for an economy already facing its weakest expansion in 11 years.
The S&P BSE Sensex Index dropped 0.6% to 40.819.07 as of 9:39 a.m. in Mumbai, set for its longest losing streak in more than four months. The NSE Nifty 50 Index retreated 0.7%. Most markets in Asia fell, with the MSCI Asia Pacific Index losing 1.1%.
India, the world’s second-most populous nation, is facing the ripple effects of shutdowns in China causing supply chain disruptions. Quarterly profit at more than half of Nifty 50 companies missed estimates in the latest reporting season, while India’s central bank has begun injecting funds into the financial system to try to boost lending.
Read: Drugs to Electronics Output in India Hit by China Shutdowns
Strategist View
The China shutdown is having an impact “across the globe and now even in India,” said A.K. Prabhakar, head of research at IDBI Capital Market Services Ltd. “That’s the market’s fear today.”
The Numbers
- All of the 19 sector indexes compiled by BSE Ltd. fell, led by a gauge of power companies.
- Sun Pharmaceutical Industries Ltd. dropped the most among Sensex stocks, falling 1.4%, while Tata Consultancy Services Ltd.’s 0.4% gain was the biggest.
Market-related stories
- Reliance Industries Consolidates Media, Distribution Units
- Market Regulator May Widen Stock Universe for India Mutual Funds
- Gold ETFs in India Lure Big Inflows Even as Buyers Shun Jewelry
To contact the reporter on this story: Ishika Mookerjee in Singapore at imookerjee@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo Towie, Tim Smith
©2020 Bloomberg L.P.
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