Indian Shares Pare Weekly Gain as Syria Strike Rattles Investors

(Bloomberg) -- Indian stocks dropped a second day to trim a weekly advance, after the U.S. launched missile strikes against Syria, accusing Bashar al-Assad's regime of using gas to kill civilians.

The benchmark Sensex and the NSE Nifty 50 Index both fell 0.7 percent at the close in Mumbai. The India NSE Volatility Index, a benchmark gauge of options prices on the Nifty gauge, rebounded 3.6 percent from an all-time low.

“Unpleasant geopolitical developments are never good for markets and economies,” Sanjay Sinha, founder of Mumbai-based Citrus Advisors, said by phone. Investors will “wait and watch” for reactions from countries related to the Syria civil unrest over the next few days before “acting decisively,” he said.

Drugmaker Sun Pharmaceutical Industries Ltd. declined 3.1 percent as ET Now reported that the U.S. Food & Drug Administration is conducting an inspection at its Dadra plant. Bharti Airtel Ltd., the nation's biggest wireless carrier, advanced 0.9 percent after the telecommunications regulator asked rival Reliance Jio Infocomm Ltd. to withdraw a promotional offer.

The Sensex on Wednesday climbed to a record, before declining in the sessions that followed. It still held on to its second weekly gain, up 0.3 percent.

Summary

• Gammon Infrastructure +14%; highest close since Nov. 3 after purchase of 24% stake in ICTPL
• Sun TV -1.7%; stock cut to reduce from hold at HSBC
• Airline stocks down on concern that airline fuel price may increase after crude oil price climbed; InterGlobe Aviation -1.1%, Jet Airways -4.6%, SpiceJet -6.1%

To contact the reporter on this story: Ameya Karve in Mumbai at akarve@bloomberg.net.

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Kurt Schussler, Jonathan Annells