World News: 10:13 GMT Tuesday 3rd December 2019. [Yahoo Business News Feed via SPi World News]
(Bloomberg) -- India stocks dropped on concern the country’s slowing economic growth outweighs the effect of policy efforts to boost demand and will be a drag on corporate earnings.The S&P BSE Sensex Index fell 0.3% to 40,675.45 at the 3:30 p.m. close in Mumbai, retreating from a record close on Thursday. The NSE Nifty 50 Index dropped by 0.5%. Equities are declining globally after U.S. President Donald Trump called for fresh tariffs on some countries.India’s economic growth collapsed below 5% for the first time since 2013 in the three months through September. While that gives the central bank more reason to cut interest rates for a sixth time this year at its Dec. 5 meeting, Nomura Holdings Inc. has cautioned that constraints in getting credit into the economy may continue to crimp demand.The Reserve Bank of India has lowered borrowing costs by the most of any Asian central bank this year, while the government has cut taxes and funded troubled industries in a bid to revive the economy.Strategist ViewThe weakness in economic indicators is “likely to impact the investor sentiment,” Ajit Mishra, vice president of research at Religare Broking Ltd. wrote in a note on Monday. “All eyes will now be on RBI monetary policy for economic revival measures.”The problems arising out of weak economic growth are “under-appreciated,” Credit Suisse Group AG’s strategist Neelkanth Mishra wrote in a note on Monday. The second-order effects of weak growth include affect on viability of loans, slower investments, tax collections and fiscal situation, Mishra added in the note.The NumbersSixteen of 19 sector sub-indexes compiled by BSE Ltd. dropped, led by a gauge of metal companies.Tata Steel Ltd. was among the top losers on the benchmark, while Bajaj Auto Ltd. rose the most after Edelweiss Capital Ltd. upgraded the stock to buy.Related StoriesGoldman Sachs Sees India’s FY20 GDP Growth Slowing to 5.3%Credit Costs for India Lenders to Normalize From 4Q: CGS-CIMBBad Loans Spike at Indian Shadow Lender Amid Debt Plan PushbackSteepest India Yield Curve in Nine Years is Set to Rise FurtherCapital Curbs Stymie Foreign Investors Eager to Buy India BondsMost Valuable Indian Lender Sees Signs of Revival in Rural AreasIndia Firms’ Revenue Growth Shrinks First Time in 4 Years: ICRATo contact the reporter on this story: Abhishek Vishnoi in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Lianting Tu at email@example.com, Margo Towie, Anto AntonyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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