Mumbai: India's stocks fell yesterday, driving the benchmark index to its first weekly decline in 10, on speculation the central bank will tighten monetary policy this week after China announced measures to cool its property market.
DLF Ltd., India's biggest developer, retreated from the highest in 11 weeks. Jaiprakash Associates Ltd., 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 on Thursday showed, increasing pressure on the Reserve Bank of India to raise interest rates at its April 20 quarterly meeting.
Cautious
"Investors are being a little cautious," said Apurva Shah, head of research at Prabhudas Lilladher Pvt. "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 declined 1.9 per cent last 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 Rs330.25. Jaiprakash fell 2.3 per cent to Rs148.05, its lowest close since March 23.
China yesterday raised ratios on down payments for some home purchases, saying "more forceful" steps are needed to cool speculation. India's economic growth in the first quarter accelerated to the fastest pace in almost three years.
