(Bloomberg) -- India stocks declined as concerns over fresh U.S.-China tensions over investment flows outweighed the festival season tailwind.
The S&P BSE Sensex fell 0.4% to 3,8667.33 at the 3:30 pm close in Mumbai. The NSE Nifty 50 Index dropped 0.3%.
Global risks ranging from trade friction to the recent oil shock have the potential to mitigate positive local developments in the Indian market, including surprise corporate tax cuts earlier this month and the start of the festival season, which has traditionally been associated with a surge in consumer demand.
Strategist View
“Avoid companies that are more globally exposed,” said Prakash Pandey, managing director and chief executive officer at Plutus Advisors & Consulting. “For now it's not a good idea to be too negative on domestically oriented stocks.”
The Numbers
- Ten of 19 sector sub-indexes compiled by BSE Ltd. declined
- Eighteen out of 31 companies on the Sensex fell. Yes Bank was the worst performer, falling 15%, while HDFC contributed most to the decline with a 2.9% drop.
- Bharti Airtel Ltd. was the best performer, advancing 5.3%.
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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, Naoto Hosoda
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