India’s stocks fell, driving the benchmark index to its first weekly decline in 10 weeks, on speculation the central bank will tighten monetary policy next week after China announced measures to cool its property market.
DLF, India’s biggest developer, retreated from the highest in 11 weeks. Jaiprakash Associates, a builder of dams, roads and bridges, dropped the most in more than three weeks. The nation’s inflation rate held at a 17-month high in March, a report yesterday showed, increasing pressure on the Reserve Bank of India to raise interest rates at its April 20 quarterly meeting.
“Investors are being a little cautious,” said Apurva Shah, head of research at Prabhudas Lilladher.
“Uncertainty around the quantum of a rate increase, corporate earnings and food inflation are weighing on the markets.”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, dropped 48.08, or 0.3 per cent, to 17,591.18. The gauge has declined 1.9 per cent this week. The S&P CNX Nifty Index on the National Stock Exchange lost 0.2 per cent to 5,262.60. The BSE 200 Index retreated 0.3 per cent to 2,213.44.
DLF slid 2.3 per cent to Rs 330.25. Jaiprakash fell 2.3 per cent to Rs 148.05, its lowest close since March 23.