Mumbai: India's stocks slid the most in three months, taking the benchmark index to its lowest level since Nov-ember, amid concern the central bank will this week tighten credit to curb accelerating inflation, curtailing profit growth.
State Bank of India Ltd., the nation's biggest lender, had its steepest drop in seven months after posting the slowest quarterly profit-growth in three years. Hindalco Industries Ltd., the largest aluminium producer, lost the most in three months after net income dropped 22 per cent in its third quarter.
"Investors will take out their money and sit on the table to see how it pans out," said Vaibhav Sanghavi, who manages funds for wealthy individuals at Ambit Capital Ltd. in Mumbai. Some of the recent "earnings have just been OK, nothing outstanding."
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 490.64, or 2.9 per cent, to 16,289.82. The gauge is at its lowest since November 6 after losing 7.7 per cent in the past six trading days, its longest losing streak since November 3. India's markets were closed on Tuesday for a national holiday.
The S&P CNX Nifty Index on the National Stock Exchange lost 3.1 per cent to 4,853.10. The BSE 200 Index retreated 3.3 per cent to 2,046.42.
State Bank slid 5 per cent to Rs1,987.65, its biggest decline since July 6. Profit growth slowed following losses on surplus funds invested in government bonds. ICICI Bank Ltd., the country's second-biggest lender, declined 5.2 per cent to Rs.787.3.
