(Bloomberg) -- India’s stock benchmark declined as investors mulled risks the pandemic poses for a fragile economy.

The S&P BSE Sensex lost 0.3% to 43,713.53 as of 10:05 a.m. in Mumbai, while the NSE Nifty 50 Index slipped by about the same magnitude. Both gauges, retreating from record highs touched Tuesday, swung between gains and losses. The expiry today of monthly futures and options contracts may be adding to volatility.

“With Europe and some parts of the U.S. thinking about partial lockdowns, we are watching closely for a potential second wave in India that would hurt the economy and markets,”said Sanjeev Hota, head of research at Sharekhan Ltd. in Mumbai.

Gains in the nation’s equities have been driven by net foreign fund purchases that are on course for a monthly record, while a report tomorrow may show India’s economy entered its first technical recession since at least 1996 last quarter, based on economists’ estimates.

See: Foreign Investors Pour Most Money Into India Stocks Ever: Chart

The yield on the benchmark 10-year government bond dropped by one basis point to 5.88% while the rupee strengthened 0.1% to 73.87 against the U.S. dollar.

The Numbers

  • Seventeen of 19 sector sub-indexes compiled by BSE Ltd. declined, led by a gauge of oil and gas companies
  • Twenty-three Sensex shares fell while seven rose
    • Infosys Ltd. contributed most to the index retreat and dropped 0.8%; Housing Development Finance Corp gave the biggest boost

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