India Stocks Head for Worst January Since 2016 Ahead of Budget

(Bloomberg) — India’s benchmark stock index was little changed as it headed toward its worst January in four years as the government grapples with measures to spur the slowing economy.

The S&P added less than 0.1% to 40,937.16 as of 9:57 a.m. in Mumbai, set for a monthly loss of 0.7%, its worst such performance since July and start to the year since 2016. The NSE Nifty 50 Index was little changed today.

Local markets will open Saturday, enabling investors to trade as Finance Minister Nirmala Sitharaman outlines India’s annual budget as the government seeks to revive demand. Growth in Asia’s third largest economy is at its slowest pace in more than a decade.

As earnings season progresses, 14 out of 23 Nifty 50 companies that have reported results for the quarter through December have missed analyst estimates. State Bank of India, ITC, Hindustan Unilever (LON:), Power Grid Corp of India, Vedanta, and Tech Mahindra are due to post results today.

Strategist View

“There are a lot of expectations on the positive side for the budget,” said Sanjiv Bhasin, an analyst at IIFL Securities Ltd. in Mumbai. “The recent market correction gave investors a good buying opportunity.”

The Numbers

• Twelve of 19 sector sub-indexes compiled by BSE Ltd. declined, led by a gauge of power companies.
• Gaining and declining stocks on the Sensex were equally matched.
• Kotak Mahindra Bank Ltd. contributed most to the index advance with a 3.9% gain after ending a dispute with the banking regulator over its founder’s shareholding; Reliance Industries Ltd. was the biggest drag, dropping 0.7%

Related Stories

• India Braces for Deficit Blowout, Higher Borrowing: Budget Guide
• Richest Asian Banker Ends Feud With RBI, Agrees to Cut Stake

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.