(Bloomberg) -- Indian equities declined, halting a five-day rally, as shares from Tokyo to Sydney slipped on concerns about global economic growth after the IMF trimmed its global growth forecast to the weakest in three years.
The benchmark S&P BSE Sensex dropped 0.5 percent to 36,395.92 as of 10:12 a.m. in Mumbai, headed for its first decline in six days. The NSE Nifty 50 Index also fell 0.5 percent.
Regional markets retreated as optimism on U.S.-China talks faded. Investors in India are focused on policy initiatives and political rhetoric ahead of a national election expected from April, even as companies continue to report earnings for the last quarter of 2018.
Strategist Views
- “Elections will make the markets volatile from March, when dates will be announced, said Avinash Gorakshakar, head of research at Joindre Capital Services Ltd. in Mumbai.
- “Global markets trends from U.S. and China are also likely to impact Indian markets selectively on a moderate basis.”
The Numbers
- Sixteen of the 19 sector indexes compiled by BSE Ltd. retreated, paced by a gauge of metal stocks.
- Twenty-four of the 31 Sensex members and 34 of the 50 Nifty companies declined.
- Net incomes of seven of the nine Nifty companies that have reported earnings so far have either topped or matched analyst estimates, according to data compiled by Bloomberg.
- Sun Pharmaceutical Industries Ltd. gained 3.6 percent, the most among Sensex and Nifty members. The nation’s top drugmaker said it will transfer distribution of its local drug business to a unit of the company in an attempt to allay concerns about corporate governance.
- Prabhat Dairy Ltd. jumped 15 percent after it agreed to sell its milk business to a unit of a French dairy.
Analyst Notes/Market-Related Stories
- Sun Pharma Kept at Buy at Jefferies Despite Governance Overhang
- Nestle India Rated New Outperform at Macquarie; PT 12,994 Rupees
- South Indian Bank Worst Performer on BSE 500 Index on 3Q Results
- Just Dial Gains After 3Q Net Income Beats Estimates
