India stocks slide on global recovery concerns

Mumbai: India's benchmark stock index slid as an artillery exchange between North and South Korea prompted investors to flee riskier assets amid investor concern global economic growth may falter.

Bharti Airtel Ltd., the nation's largest mobile-phone operator, dropped for the first time in six days. The confrontation between the countries added to losses on Asian markets after Moody's Investors Service warned it may downgrade Ireland. State Bank of India, the biggest lender, retreated to its lowest level since September 8.

"It's the Korean effect," said Ambareesh Baliga, vice- president at Karvy Stock Broking Ltd. "There is a certain amount of nervousness in the markets."

The Bombay Stock Exchange's Sensitive Index, or Sensex, lost 265.75, or 1.3 per cent, to 19,691.84, at close in Mumbai, after earlier sliding as much as 3.1 per cent, the most in a year. The S&P CNX Nifty Index on the National Stock Exchange dropped 1.3 per cent to 5,934.75. The BSE 200 Index retreated 1.2 per cent to 2,497.36.

Bharti slid 2.3 per cent to Rs329.15. Reliance Industries Ltd., the most valuable company, lost 1.6 per cent to Rs995.6, its lowest level since September 30. Jaiprakash Associates Ltd., a builder of dams, roads and bridges, retreated 1.7 per cent to Rs123.65. DLF Ltd., the biggest developer, decreased 1 per cent.

Outlook

"Over the next one or two months we will see such corrections due to the global concerns, even as the long-term growth in India looks good," said Apurva Shah, head of research at Prabhudas Lilladher Pvt in Mumbai.