(Bloomberg) -- Indian stocks declined, tracking a global selloff, especially in high-flying technology bets, and on worries that a Covid-19 vaccine could be delayed.
The benchmark S&P BSE Sensex dropped 0.5% at the close in Mumbai as shares retreated across Asia after the Nasdaq 100 Index dropped sharply on Tuesday. The Sensex is still up about 45% from a low in March, outperforming the MSCI Asia Pacific Index during this period.
The global rout is adding to India's problems ranging from a shrinking economy to a border clash with China. Asia's third-largest economy saw its worst contraction on record in the June quarter and faces the world's second-highest caseload of virus infections. It seems inevitable that the South Asian nation will at some point overtake the U.S. for Covid-19 cases.
“India is facing collateral damage from the global tech equity selloff alongside its own problems,” said Deven Choksey, managing director at KRChoksey Investment Managers Pvt. “We may see more declines, but that will be healthy for the asset class.”
A gauge of bank stocks dropped 2.1%, the most among BSE Ltd.'s sub-indexes. Shares in State Bank of India Ltd. dropped 4.5%.
Reliance Industries Ltd., India's biggest company by market value, rose 2.7% after it said Silver Lake Partners will invest about $1 billion in the firm's retail business and people familiar said KKR & Co. is in advanced talks to do the same.
Yield on India's benchmark 10-year government bonds fell 6 basis points to 5.99%, while the rupee remained little changed at 73.55 per dollar.
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