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Indian stock market falls on inflation worries
Indian shares fell 1.7 per cent yesterday to their lowest close in about a month, as investors braced for higher inflation and the risk of more increases in interest rates.
- Reuters
- Published: 23:44 August 28, 2008
Mumbai: Indian shares fell 1.7 per cent yesterday to their lowest close in about a month, as investors braced for higher inflation and the risk of more increases in interest rates.
With oil climbing for a fourth day, to above $119 a barrel, the outlook remained grim for Indian companies that have been grappling with steep hikes in borrowing costs in the past two months.
"Everyone is worried about inflation again. People were hoping that inflation will moderate and interest rates have probably peaked, but I don't think that's going to happen now," said Neeraj Dewan, a director at Quantum Securities.
"The negative sentiment will prevail, as there is no liquidity in the market and the macro economic indicators are not showing signs of any improvement."
The 30-share BSE index fell 1.74 per cent, or 248.45 points, to 14,048.34, with all but five of its components dropping.
It has fallen three per cent in two days.
The 50-share NSE index fell 1.82 per cent to 4,214.
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