Stocks fell the most in almost two weeks after industrial output posted the biggest decline since 1993 in December as the global recession crimped exports.
Bharat Heavy Electricals (Bhel), the nation’s largest power equipment maker, declined 2.6 per cent. Infosys Technologies sank the most in a month, leading software exporters lower on concern US measures to stem the financial crisis will fail to boost growth in the industry’s biggest overseas market.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, lost 152.71, or 1.6 per cent, to 9,465.83, the biggest decline since February 2. The S&P CNX Nifty Index on the National Stock Exchange declined 1.1 per cent to 2,893.05. The BSE 200 Index slid 1.1 per cent to 1,114.78. S&P CNX Nifty futures for February delivery fell 1.3 per cent to 2,886.40.
Output at factories, utilities and mines dropped 2 per cent from last year after a revised 1.7 per cent gain in November, the government said. Manufacturing, which makes up about 80 per cent of India’s total output, fell 2.1 per cent in December, compared with a 1.7 per cent gain in November.
Bhel fell 2.6 per cent to Rs 1,410.70. Infosys retreated 3.6 per cent to Rs 1,254.55. Tata Consultancy Services dropped 0.9 per cent to Rs 509.90.
The MSCI Asia Pacific Index lost 1.8 per cent after US Treasury Secretary Timothy Geithner said he needs time to work out details of a bank-rescue plan unveiled on February 10.
The delay prompted concern that US measures to alleviate the financial crisis won’t be enough to revive the world’s largest economy, accounting for more than half the revenue of Indian software developers.
Reliance Industries, the nation’s most valuable company, fell 2.2 per cent to Rs 1,351.55.
Overseas investors bought a net Rs 416 crore ($85.4 million) of stocks on February 10, according to the nation’s market regulator.
Oil & Natural Gas Corp fell 1.9 per cent to Rs 693.60. The government has delayed approval for India’s biggest exploration company’s plan to explore for oil in a national park in Rajasthan state until an environmental impact study is conducted, it was reported.
Hexaware Technologies, an Indian computer- services company, jumped by a record 66 per cent to Rs 33.35. As many as 36.3 million shares were traded on the stock exchanges.
United Spirits dropped 9 per cent to Rs 665.55. India’s biggest liquor maker declined after Diageo, the world’s largest liquor maker, said its India discussions are “very premature.”
