Indian stocks fell to the lowest in almost a month on concerns the government may face further roadblocks to its economic reform agenda and amid fresh signs Greece may exit the euro.
Maruti Suzuki India Ltd., India’s biggest carmaker, slumped after it stopped work at its Manesar factory and said production wouldn’t restart until a probe is completed into last week’s rioting. Jindal Steel & Power Ltd., the country’s second-biggest steelmaker by value, dropped 2.7 per cent.
The BSE India Sensitive Index, or Sensex, fell 1.6 per cent to 16,889.62, according to preliminary closing prices in Mumbai. That’s the lowest close since June 25.
The Indian government is trying to revive its plan to overhaul the retail sector, which has been halted since December amid protests from opposition parties and the Trinamool Congress, Singh’s biggest ally in the governing alliance.
Singh, who took control of the finance ministry in June, has pledged to boost growth after expansion slowed to a near- decade low. The government last year halted the plan to open the country’s retail sector, while an anti-corruption bill and proposals to allow foreign direct investment in aviation and pensions are also stalled.
The Reserve Bank of India’s technical advisory committee will meet on July 25 in Mumbai to help hammer out a policy response to decelerating growth and rising inflation, the Press Trust of India reported on Sunday, without saying where it got the information. The authority meets for its next policy review on July 31.
Six Indian political parties wrote a joint letter to Prime Minister Manmohan Singh on July 21 asking the government not to revive a plan to allow overseas retailers including Wal-Mart Stores Inc. to open supermarkets. The MSCI Asia Pacific Index dropped, heading for the biggest two-day loss in seven weeks, on concern China’s economic growth will slow and after German Vice Chancellor Philipp Roesler said he’s “very sceptical” that leaders in the European Union, India’s largest trading partner, will be able to rescue Greece.