 "Indian stocks halt advance")
Indian stocks fell for the first time in three days amid concern that quickening inflation will limit the central bank's ability to cut borrowing costs.
Tata Motors Ltd, the maker of the world's cheapest car, and Sun Pharmaceutical Industries Ltd, India's most valuable drugmaker, were the biggest losers on the S&P BSE Sensex. Mortgage lender Housing Development Finance Corp and Axis Bank Ltd fell for the first time in three days. Infosys Ltd, the second-largest software services provider, dropped for a fourth day as it said it plans a "ramp-down" of about 3,000 employees after Royal Bank of Scotland Group Plc scrapped plans for a spinoff.
The Sensex resumed trading following a holiday, dropping 0.3 per cent at the close in Mumbai. The index is trading near the most expensive level in 15 months. Indian consumer and wholesale inflation both accelerated more than estimated in July, according to data late Friday and Tuesday, narrowing the room for monetary easing as investors wait to see who will replace hawkish central bank head Raghuram Rajan next month. "The markets are already high valued and even the slightest bad news can spark a selloff," said Chokkalingam G, managing director at Mumbai-based Equinomics Research & Advisory Pvt.
