Indian stocks fell, dragging the benchmark index to its lowest in six weeks, on concern mounting bank losses worldwide will deepen the global recession. ICICI Bank Ltd., the nation’s second-largest lender, and HDFC Bank Ltd., the third-biggest, both declined the most in more than a month. U.S. stocks sank yesterday, sending the Dow Jones Industrial Average to its worst Inauguration Day decline, as financial shares plunged near a 14-year low. “We are going to see a lot of volatility in the first six months of the year as the world’s biggest economy starts stabilizing,” said Sanjay Dongre, who helps manage equities at UTI Asset Management Co. in Mumbai., the nation’s third-largest money manager. “The stimulus packages of central bankers may work with a lag effect.” The Bombay Stock Exchange’s Sensitive Index, or Sensex, retreated 126.31, or 1.4 percent, to 8,974.24 as of 10:16 a.m. local time, set for its lowest since Dec. 5. The S&P CNX Nifty Index on the National Stock Exchange fell 1.1 percent to 2,766.10. The BSE 200 Index slid 2 percent to 1,087.29. CNX Nifty Index Futures for January delivery declined 1.9 percent to 2,725. Wipro Ltd., India’s third-largest provider of software services, fell after third-quarter profit growth slowed and lagged behind analysts’ estimates. Financial Companies Financial companies led U.S. stocks lower yesterday as Barack Obama was sworn in as president. The Dow Jones Industrial Average declined 4 percent. State Street Corp., the largest money manager for institutions, tumbled 59 percent after unrealized bond losses almost doubled. Wells Fargo & Co. and Bank of America Corp. slumped more than 23 percent on an analyst’s prediction that they’ll need to take steps to shore up their balance sheets. ICICI fell 4.4 percent to 379 rupees, the lowest since Dec. 8. HDFC Bank Ltd., the No. 3 lender, slid 1.8 percent to 896 rupees, the lowest since Dec. 5. State Bank of India, the largest, slid 1.2 percent to 1,099.95 rupees, the lowest since Dec. 3. Wipro fell 3.9 percent to 219.35, its lowest since Nov. 20. Net income rose 8.7 percent to 8.98 billion rupees in the three months ended Dec. 31. Profit missed the 9.8 billion rupee median estimate in a Bloomberg News survey. Sales climbed 25 percent to 65.4 billion rupees. Overseas funds sold a net 4.4 billion rupees ($90 million) of Indian stocks Jan. 19, according to the nation’s stock market regulator.

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