Indian shares dropped as industrial-equipment makers declined ahead of a factory output data that some investors gauged would fall short of estimates. Lenders also fell on concerns that farm-credit waivers by states would add to bad loans in the banking system. <\/p>\n
The benchmark S&P BSE Sensex closed 0.5 percent lower in Mumbai, its steepest decline in nearly three weeks. The NSE Nifty 50 Index also fell 0.5 percent. Larsen & Toubro Ltd., the nations biggest engineering company, retreated 2.3 percent to be worst Sensex performer along with Tata Motors Ltd. <\/p>\n
Investors may be positioning themselves for a bad set of manufacturing data later in the day and thats reflecting in the capital-goods shares, Ashish Shah, head of equity at Mumbai-based A.C. Choksi Share Brokers Pvt., said on phone. The market is under some selling pressure after its rally so far this year, he said. <\/p>\n
Indias index of industrial production rose 2.7 percent in April versus a year earlier, according toestimates compiled by Bloomberg. The index is likely to miss that forecast and rise 2.3 percent, according to Bloomberg Intelligence. <\/p>\n
Ten of the 13 sector gauges compiled by BSE Ltd. retreated, led by the S&P BSE Capital Goods Indexs 1.6 percent drop. The S&P BSE Information Technology Index rebounded from a fall of more than 1 percent to close 0.4 percent higher, the best performer. <\/p>\n
A gauge of lenders also fell 1 percent after the Maharashtra governmentannounced that it will waive farm credits, adding to investor concerns of a further increase in bad loans at banks, already the highest among major economies globally. Uttar Pradesh, the nations most populous state, made a similar announcement in April. <\/p>\n
Read the central banks views on farm-loan waivers <\/p>\n
Farm loan waivers have created negative sentiments, mainly for banks and financial companies, which have largest weights in indexes, said Sanjay Sinha, founder of Mumbai-based Citrus Advisors. Credit discipline suffers and these measures are also economically regressive, he said. <\/p>\n
Indias Sensex and Nifty indexes have both rallied 17 percent in 2017, the best-performing gauges among major Asian markets. <\/p>\n
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India's Sensex Drops Most in Two Weeks, Led by Technology Stocks - Bloomberg<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Indian shares dropped as industrial-equipment makers declined ahead of a factory output data that some investors gauged would fall short of estimates. Lenders also fell on concerns that farm-credit waivers by states would add to bad loans in the banking system. Continue reading