The largest overseas bet on Indian consumers is spurring speculation that companies from Nestle SA to Colgate-Palmolive Co. will pursue more deals in a nation where household income is forecast to triple this decade.
Indian stocks dropped the most in four months on concern rising oil prices will spur inflation and widen the nation’s trade deficit. The rupee weakened to a four- week low and bonds declined.
United Spirits Ltd. surged by a record in Mumbai trading after Diageo Plc said it will buy a controlling stake in India’s largest distiller for $2.04 billion.
The plunge and rebound in Indian stocks that pushed the S&P CNX Nifty Index down 16 percent in eight seconds underscored concern about financial markets.
Indian stock-index futures fell before markets open following a holiday for polls in Mumbai, and amid concerns weak monsoon rains may fuel inflation.
Indian stock-index futures dropped after the benchmark index climbed to a record yesterday.
"The rally has been sharp this year and will be supported by earnings."
- Arun Kejriwal on Oct 08, 2014