Foreign investors are cutting their holdings in India’s state-controlled companies to a three-year low as Prime Minister Manmohan Singh’s government sacrifices shareholder return to revive the weakest economy in nine years.
Sensex -0.2% at 25,313.74 * CNX Nifty -0.1%, volume 45% below 30-day avg.; BSE 100 -0.1%; BSE 500 little changed * Rupee ends little changed at 60.1325 per dollar after earlier weakening to one-week low on concern higher global oil prices, inadequate rainfall will spur inflation * BSE 100 gainers: Ashok Leyland +6%, Rural Electrification +4.5%, Power Finance +3.3% * BSE 100 decliners: Yes Bank -3%, Idea Cellular -2.7%, Oil & Natural Gas Corp -1.4%, JSW Steel Ltd -1.4% * Monsoon, higher oil prices are “short-term headwinds” for mkt, Jeff Chowdhry, head of emerging-market stocks at London- based F&C Asset Management, which oversees about $150b, tells Bloomberg TV India; foreign investors to favor India if govt. “pushes reforms” to tackle budget deficit and subsidies * NOTE: Govt. to present federal budget on July 10; PM Narendra Modi says he’s prepared to take unpopular measures to revive economy growin
Indian shares traded in New York dropped the most in a week, following shares in Mumbai lower, amid concern the nation’s budget lacks measures to curb expenditure key to containing the fiscal gap. Stock futures fell in Singapore and rupee forwards sank to near a six-week low.
Agricultural Bank of China Ltd. and Petroleo Brasileiro SA may hit the market with $50 billion of shares by the end of September after state-backed sales pushed initial public offerings in emerging markets above developed nations for a record fifth straight quarter.
Egypt’s borrowing costs are rising to the highest in more than two years and stocks listed overseas are tumbling as the Cairo exchange’s five-week shutdown and new rules on shareholder disclosure keep investors away.