Sensex Declines on Concern Over Import Disruptions on India Inc.
Bloomberg
Published Feb 23, 2020 11:13PM ET
Updated Feb 24, 2020 12:26AM ET
Sensex Declines on Concern Over Import Disruptions on India Inc.
(Bloomberg) -- Indian stocks fell on concern that disruptions to supply chains due to the spread of the new coronavirus may hurt company earnings and worsen the economic outlook.
The S&P BSE Sensex declined 1% to 40,749.17 as of 9:32 a.m. in Mumbai. The NSE Nifty 50 Index slipped 1.1%%. Markets were closed on Friday for a holiday.
India’s imports from China account for nearly 14% of total purchases from abroad, Mumbai-based brokerage Prabhudas Lilladher Pvt said in a note. Industries that are most exposed include pharmaceutical, automobiles, consumer durables, fertilizers and chemicals.
Crisil Ltd., a credit assessor and ratings company, expects Indian companies to be “severely” affected if delays of supplies and parts extend beyond three months.
Strategist View
“Sentiment is negative as investors are concerned about the impact of the coronavirus on global growth,” said Anita Gandhi, a Mumbai-based investment adviser at Arihant Capital Markets. “It will take some time to gauge the impact on us but most of the China export-dependent Indian companies could see pressure.”
The Numbers
- All except two of 19 sector indexes compiled by BSE Ltd. fell, led by a gauge of metal companies
- Housing Development Finance Corp Ltd. contributed the most to the Sensex decline, falling 2.4%, while Tata Steel Ltd.’s 3.5% drop was the steepest
- Aurobindo Pharma Ltd. slumped 10%; a U.S. FDA inspection at unit remains under review
- Trump’s India Trip to Produce Huge Crowds, Little Trade Progress
- Ambani’s Plans to Make Reliance Debt-Free Hit Multiple Snags
- Altico’s Bidders Incl. SSG Capital, Cerberus Revise Offer: ECT
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Written By: Bloomberg
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