(Bloomberg) -- Indian stocks declined amid a global sell-off on deepening concerns over an economic slowdown and domestic worries about the health of the financial sector.
The S&P BSE Sensex declined 0.5% to 38,106.87 as the 3:30 p.m. close in Mumbai, while the NSE Nifty 50 Index slid 0.4%.
Renewed doubts about debt and the availability of liquidity for non-bank lenders have helped spark a bearish turn in the market. With investors expecting more defaults among mid-sized companies, local stocks are starting to give up gains made after surprise corporate tax cuts two weeks ago.
READ: India Shadow Banking Crisis May Return to Haunt Stock Market
Strategist View
“This is the classic crisis of confidence,” Jefferies analysts led by Nilanjan Karfa wrote in a note, “We are reaching a point wherein the Reserve Bank of India needs to move decisively to try and restore faith as a lender of last resort.”
The Numbers
- Twelve of 19 sector sub-indexes compiled by BSE Ltd. fell, led by a gauge of metal stocks.
- HDFC Bank Ltd. contributed most to the index decline with a 2% fall, while Vedanta Ltd. was the worst performer on the Sensex, dropping 4.7%; ITC Ltd. provided the biggest boost to the index, advancing 2.2%, while Yes Bank Ltd. was the best performer, surging 33% after a recent slump
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To contact the reporter on this story: Ronojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Kurt Schussler
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