India’s Sensitive Index swung between gains and losses yesterday. ICICI Bank Ltd led declines after neighbouring Pakistan’s former Prime Minister Benazir Bhutto was assassinated, increasing concern over the stability of the nuclear-armed nation that is a hub of the war on terrorism.
The Bombay Stock Exchange’s Sensex slid 9.77, or 0.1%, to 20,206.95. It earlier rose as much as 0.2%. The index rose 5.5% in the week and is set for a 47% gain this year, matching a similar gain last year. Markets will remain open on Monday.
The S&P/CNX Nifty Index on the National Stock Exchange fell 1.80, or less than 0.1%, to 6,079.70.
“Markets could remain volatile for a few days after the turmoil in the neighbouring country,” said Sandip Sabharwal, chief investment officer at JM Financial Mutual Fund in Mumbai, which oversees the equivalent of $1.1bn in equities. Reliance Energy Ltd gained after the stock regulator rejected objections to the initial share sale of its unit.
The Bank of New York India American Depositary Receipts Index, which tracks US-listed shares of Indian companies, slumped 4.4% on Thursday. All 14 Indian ADRs tracked by the Bank of New York measure declined.
ICICI, the nation’s second-largest lender, fell Rs14.9, or 1.2%, to 1,227.10. Infosys Technologies Ltd, the second-biggest software exporter, slid Rs8.55, or 0.5%, to Rs1,795.75.
The rupee declined on concern global funds will slow investments in the region after neighbouring Pakistan’s former Prime Minister Benazir Bhutto was assassinated on Thursday.
The currency declined for the first time in five days as the nation’s benchmark share index ended the longest gaining streak in two months.
The rupee declined to 39.4325 per dollar as of the 5pm close in Mumbai, from 39.4225 on Thursday.
