Mumbai : India's stocks fell, driving the benchmark index to a eight-week low, as investors sold riskier assets amid concerns the European debt crisis is worsening and may derail the global economic recovery.
ICICI Bank, the country's second-biggest lender, declined for a third day. Jaiprakash Associates, a builder of dams, roads and bridges, dropped to the lowest in more than two months. Overseas investors sold a net Rs2.36 billion (Dh196 million) of the nation's equities on May 3, the third day since February 26 that they sold more shares than they bought.
"The mood is bearish," said D.K. Aggarwal, who manages funds for wealthy individuals as chairman of SMC Wealth Management Services in New Delhi. "Globally, investors have turned risk averse and Indian markets are also getting impacted. They are booking profits as European debt concern might worsen." He declined to say how much he manages or what he's buying and selling.
The Bombay Stock Exchange's Sensitive Index, or Sensex, lost 49.18, or 0.3 per cent, to 17,087.96. The gauge fell to its lowest since March 9 after losing 2.7 per cent this week. The S&P CNX Nifty Index on the National Stock Exchange fell 0.5 per cent to 5,124.90. The BSE 200 Index retreated 0.1 per cent to 2,177.02.
ICICI Bank declined 1.3 per cent to Rs903.65. HDFC Bank, the third-biggest lender, lost 1.1 per cent to Rs1,916.35. Jaiprakash sank 4.7 per cent to Rs133.55, its steepest fall since February 5.
Oil & Natural Gas Corp, India's largest state-owned oil explorer, declined 1.2 per cent to Rs1,031.05.
