India Stocks Decline on Dimming Prospects of U.S. Stimulus Deal

(Bloomberg) -- Indian stocks fell, in line with a broad decline in Asian peers, as investors were concerned over fading prospects for a U.S. stimulus deal.

The S&P BSE Sensex declined 0.6% to 45,834.40 as of 10:25 a.m. in Mumbai. The NSE Nifty 50 Index slipped 0.7%, snapping a seven-day win streak.

Agro-chemical maker UPL Ltd. was the worst performer on the Nifty with a 14% decline, its worst since March 23, after the Economic Times reported that a whistleblower has alleged the company’s founders siphoned off money. Attempts to contact the company were unsuccessful.

While negotiations over a U.S. virus relief package remained deadlocked, the nation’s Covid-19 deaths rose above 3,000 a day for the first time. The U.K.’s vaccination campaign hit a stumbling block after two people with allergies experienced reactions to the Pfizer shot.

The Indian market decline Thursday “appears to be a temporary pause as ample liquidity in the market has been continuously supporting a buy trend,” said Ravi Singhal, a strategist at Jaipur-based GCL Securities Ltd.

Foreign investors have purchased a net $18.4 billion of Indian equities this year through Dec. 8, are already the most since 2013, according to data compiled by Bloomberg.

The rupee weakened 0.2% to 73.6850 per U.S. dollar, while the yield on 10-year government bonds fell 2 basis points to 5.92%.

The Numbers

• All 19 sector indexes compiled by BSE Ltd. fell, led by a gauge of basic material companies
• Reliance Industries Ltd. contributed the most to the Sensex decline, decreasing 1.1%, while UltraTech Cement Ltd. had the largest drop, falling 2.5%

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