(Bloomberg) -- India stocks fell, retreating from yesterday's biggest gain in almost two weeks, as investors mulled the detail of a government stimulus package aimed at spurring the economy.
The S&P BSE Sensex dropped 2.8% to 31,122.9 at the 3:30 p.m. close in Mumbai, while the NSE Nifty 50 Index lost 2.6%.
Almost half of the $265 billion rescue package -- equivalent to 10% of gross domestic product -- comprises monetary measures announced since February, with an additional $72 billion offered on Wednesday in credit lines to small firms, shadow banks and electricity distributors.
“There won't be free money in the hands of companies and taxpayers,” said Deven Choksey, a strategist at KR Choksey Investment Managers Pvt. in Mumbai. “The stimulus largely consists of loans at some point in time.”
Read: Fresh Crisis Looms for India Shadow Banks After Fund Closures
As the quarterly earnings season continues, of the 15 Nifty 50 companies that have reported results so far, only Shree Cements Ltd. has beaten analyst estimates and few have provided outlooks.
Read: India Investors Counting on Calmer Days Ahead: Taking Stock
The Numbers
- Sixteen of 19 sector sub-indexes compiled by BSE Ltd. fell, led by a gauge of IT companies.
- Reliance Industries Ltd. contributed most to the index decline, slipping 4%. Tech Mahindra Ltd. had the biggest fall, declining 5.2%
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