Thirteen of 19 sector sub-indexes compiled by Bombay Stock Exchange declined, led by losses in consumer and telecom stocks.
Indian stocks fell, with the benchmark equity gauge set for its longest string of losses in more than three months, as investors weighed the outlook for Asia’s best performing major stock market this year against sustained weakness in the local currency that may weigh on economic growth.
The S&P BSE Sensex retreated 0.1 per cent to 38,286.49 as of 10:05 a.m. in Mumbai, set for a fifth day of losses from a record high close. Thirteen of 19 sector sub-indexes compiled by BSE Ltd. declined, led by losses in consumer and telecom stocks. Exporters rose the most on the main measure, paced by Infosys Ltd. and Tata Consultancy Services Ltd., as the weaker rupee boosts the local value of their sales abroad.
“Concerns about the rupee weighing on economic outlook and short-term valuations are hurting stocks today,” Deven Choksey, managing director at KR Choksey Shares & Securities Pvt., said by phone from Mumbai.
While there’s optimism that economic growth topping 8 per cent will help power India equities higher in the coming months, lingering external risks, most notably from the price of oil — and its impact on the rupee — and stretched valuations are giving some investors pause. The local currency is the worst performer among major Asian currencies this year, increasing the cost of imported fuel while boosting the competitiveness of exporters. – Bloomberg