6:30 PM Mumbai – Stocks in Mumbai traded lower and extended weekly and year loss after weak profit from Hindustan Lever added to global market jitters. Emerging markets and commodities continued to struggle on the growing worries that China may let yuan drift lower by another 10% to sustain exports.
Stocks in Mumbai extended losses in the second week in a row after Hindustan Lever Ltd reported weaker-than-expected quarterly results.
Market indexes opened higher but struggled in the early afternoon when European markets declined at the start and rupee drifted to a new two-year low and crude oil continued to slide in Asia-wide trading.
At close, Sensex index declined 317.93 or 1.3% to 24,455.04 and rupee edged 38 paisa lower to 67.67 against the U.S. dollar.
For the week, the Sensex declined 1.9% and extended year-to-date loss to 6.5%.
The reference index has fallen nearly 18% since its March 2015 high and the Sensex is now approaching bear territory.
The Shanghai composite index dropped 3.6% to 2,900.97, the lowest close in fifteen months and the index has fallen more than 20% since its high in December.
Stocks were on the decline in the second largest economy of the world on the renewed worries about China’s economic slowdown spreading to other markets around the world. In addition, the government controlled Xinhua News Agency reported that new loans issued by banks in December declined from the previous month.
Brent crude continued to trade volatile in the region and in India and traded below $30 a barrel and declined 2% in the week.
Foreign investors, responsible for nearly half of trading on the Mumbai stock exchanges have been net sellers of domestic stocks and so far sold about $670 million of stocks.
Hindustan Unilever Ltd declined 2.8%, the most in nearly five months and in the session dropped as much as 6% after the largest consumer products maker reported weaker-than-expected sales growth.
Revenues in the latest quarter barely increased 0.54% to 7,820 crore and net income edged up 2.2% to 971 crore. The unit volume growth in product sales was the weakest in three quarters.