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India’s Sensex Falls as China Shutdowns Add to Economic Woes

Bloomberg logoBloomberg 2/18/2020 Ishika Mookerjee
a person standing in front of a tall building: The Bombay Stock Exchange (BSE) building stands in Mumbai, India, on Tuesday, Dec. 11, 2018. Urjit Patel’s shock exit as governor of the Reserve Bank of India roiled financial markets already nervous about early election results showing Prime Minister Narendra Modi’s ruling party losing support in key states. © Bloomberg The Bombay Stock Exchange (BSE) building stands in Mumbai, India, on Tuesday, Dec. 11, 2018. Urjit Patel’s shock exit as governor of the Reserve Bank of India roiled financial markets already nervous about early election results showing Prime Minister Narendra Modi’s ruling party losing support in key states.

(Bloomberg) -- India’s stock benchmark declined for a fourth straight day, with disruptions from the coronavirus outbreak clouding the outlook for an economy already facing its weakest expansion in 11 years.

The S&P BSE Sensex Index fell 0.4% to close at 40,894.38 in Mumbai, its longest losing streak in more than four months, after sliding as much as 1.1%. The NSE Nifty 50 Index retreated by the same magnitude. Most markets in Asia fell, with the MSCI Asia Pacific Index losing 1.1%.

The S&P BSE PSU Index, a gauge of India’s 63 state-run companies, erased losses following bunched trades in some of its biggest contributors including Coal India Ltd., Oil & Natural Gas Corp. and Power Grid Corp. of India Ltd.

India, the world’s second-most populous nation, is facing the ripple effects of virus-related factory shutdowns in China causing supply chain disruptions. Quarterly profit at more than half of Nifty 50 companies missed estimates in the latest reporting season, while India’s central bank has begun injecting funds into the financial system to try to boost lending.

Read: Drugs to Electronics Output in India Hit by China Shutdowns

Strategist View

The China shutdown is having an impact “across the globe and now even in India,” said A.K. Prabhakar, head of research at IDBI Capital Market Services Ltd. “That’s the market’s fear today.”

The Numbers

Fifteen of the 19 sector indexes compiled by BSE Ltd. fell, led by a gauge of telecom companies.Bharti Airtel Ltd. dropped the most among Sensex stocks, falling 3.1%, while State Bank of India’s 1.1% gain was the biggest.

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To contact the reporter on this story: Ishika Mookerjee in Singapore at imookerjee@bloomberg.net

To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo Towie, Tim Smith

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