Mumbai: India's benchmark stock index fell, on course for its worst month since January, as Europe's sovereign debt crisis and rising US jobless claims prompted investors to withdraw funds from riskier assets.
Sterlite Industries (India) Ltd, the largest copper producer, dropped 1.6 per cent as metal prices tumbled. Wipro Ltd, India's third-largest software-services provider, declined to the lowest in two weeks. The nation's largest software exporters get more than a fifth of their sales in Europe.
"Global risk aversion has increased among investors," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd in Kochi, southern India. "The global markets are under a lot of pressure. We have advised our clients to book profits in mid and small-cap stocks."
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 74.07, or 0.5 per cent, to 16,445.61, taking its loss last week to 3.2 per cent. The gauge is poised for its worst monthly performance since January's 6.3 per cent slide.
The S&P CNX Nifty Index on the National Stock Exchange lost 0.3 per cent to 4,931.15. The BSE 200 Index retreated 0.6 per cent to 2,089.54.
Sterlite declined 1.6 percent to Rs641.65. The stock has slid 22 per cent since the end of April and is poised for its worst monthly performance since October 2008. Commodities, measured by the Reuters/Jefferies CRB Index of 19 raw materials, slumped to an eight-month low yesterday.
