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 to their lowest 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 No. 3 money manager. “The stimulus packages of central bankers may work with a lag effect.” The Bombay Stock Exchange’s Sensitive Index, or Sensex, retreated 321.38, or 3.5 percent, to 8,779.17, its lowest since Dec. 5. The S&P CNX Nifty Index on the National Stock Exchange fell 3.2 percent to 2,706.15. The BSE 200 Index slid 3.1 percent to 1,053.36. CNX Nifty Index Futures for January delivery declined 3.2 percent to 2,686.4. Wipro Ltd., India’s third-largest provider of software services, fell to the lowest in two months after third-quarter profit growth slowed and lagged behind analysts’ estimates. 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. Missed Estimate ICICI fell 6.8 percent to 369.35 rupees, the lowest since Dec. 5. HDFC Bank Ltd., the No. 3 lender, slid 2.5 percent to 889.45 rupees, the lowest since Dec. 3. State Bank of India, the largest, slid 2.9 percent to 1,081.2 rupees. Housing Development Finance Corp., India’s biggest mortgage lender, lost 7.6 percent to 1,373.55 rupees, a near two-month low, after third-quarter profit missed analyst estimates. Net profit fell to 5.47 billion rupees, lagging the 5.8 billion rupee median estimate of analysts in a survey by Bloomberg News. Wipro fell 3.7 percent to 219.70 rupees, 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. The following were among the most active shares traded on the Bombay and National stock exchanges. Stock symbols are in parentheses after company names: Dr. Reddy’s Laboratories Ltd. (DRRD IN) fell 20.85 rupees, or 4.5 percent, to 447.05. India’s second-biggest drugmaker reported a profit in the third quarter from a loss a year earlier. Net income for the quarter ended Dec. 31 was 1.92 billion rupees. Educomp Solutions Ltd. (EDSL IN) dropped 441.8 rupees, or 22 percent, to 1,526.85, the most since listing. India’s biggest education company by market value dropped the most in three years before the company said it lodged a complaint with police to investigate “malicious e-mails.” Educomp said there had been “an attempt to draw a parallel” between the company and Satyam Computer Services Ltd. Satyam’s shares have lost 85 percent of their value in two weeks since its founder admitted falsifying $1 billion in assets. Hindustan Zinc Ltd. (HZ IN) dropped 16.55 rupees, or 4.8 percent, to 332.20. India’s largest producer reported a profit drop for the third straight quarter because of declining prices. Net income slumped 56 percent to 3.7 billion rupees in the three months ended Dec. 31. Hero Honda Motors Ltd. (HH IN) added 4.7 rupees, or 0.6 percent, to 841.50. India’s biggest motorcycle maker reported a better-than-estimated 9.1 percent gain in third-quarter profit after it raised prices and sold more expensive models. Net income rose to 3 billion rupees. That topped the 2.86 billion rupees median estimate in a Bloomberg survey. Maytas Infra Ltd. (MAY IN) fell 5.25 rupees, or by its 5 percent limit for the 10th day, to 100.15. The Indian company said it hasn’t used money belonging to Satyam Computer Services Ltd. (SCS IN), the Indian software maker that’s being investigated for a $1 billion fraud. Maytas, promoted by the founders of Satyam, said it is in the business of implementing infrastructure projects and is “fully co-operating” with investigations by government agencies.

Source