Singapore: India’s equities benchmark snapped a three-day winning streak, tracking declines in global stocks, as investors assessed the potential fallout of an impeachment inquiry of U.S. President Donald Trump.
The S&P BSE Sensex dropped 1.3% to 38,593.52 at the 3:30 p.m. close in Mumbai, while the NSE Nifty 50 Index also fell by the same magnitude. Both gauges surged more than 8% in the three sessions through Tuesday after India’s government lowered the corporate tax rate.
Global stocks fell on Wednesday after U.S. House Speaker Nancy Pelosi said a formal impeachment inquiry will be opened on Trump.
India remains the most expensive market in emerging Asia even as analysts increased earnings estimates for the benchmark gauges by as much as 10% to factor in the lower tax burden, according to Bloomberg data.
Strategist View
“We prefer to remain cautious at higher levels,” Ajit Mishra, vice president of research at Religare Broking Ltd. wrote in a note on Tuesday. “Indian benchmark indices are trading near peak valuations and sustainability at this level is essential.”
The Numbers
- Fifteen of 19 sector sub-indexes compiled by BSE Ltd. dropped, led by a gauge of auto companies.
- 25 of the 31 Sensex members and 37 of the 50 Nifty companies declined.
- State Bank of India Ltd. was the top loser, while Tata Consultancy Services Ltd. was among the top losers. – Bloomberg
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