India Stocks Fall to Two-Month Low, Led by Tata Steel, Hindalco

July 13 (Bloomberg) -- Indian stocks fell to a two-month low, led by Tata Steel Ltd. and other metals producers after commodities prices declined, and on concerns that government measures may not be enough to revive economic growth. Tata Steel, the largest maker of the alloy, slid almost 4 percent. Hindalco Industries Ltd., the No. 1 aluminum producer, declined 3.4 percent. JSW Steel Ltd. slumped 6 percent. “People want to wait for some positive action because they have been disappointed that nothing came from the budget,” said S. Krishnakumar, vice-president of equities at Sundaram BNP Paribas Asset Management Co. Ltd. in Chennai, who manages $420 million. Finance Minister Pranab Mukherjee on July 6 unveiled the widest budget deficit in 16 years and failed to lay out firm plans to sell state-run assets. The Bombay Stock Exchange’s Sensitive Index, or Sensex, fell 103.9, or 0.8 percent, to 13,400.32, its lowest since May 15. The drop extended a 9.5 percent slide last week, the biggest retreat since the week ended Oct. 26. The S&P CNX Nifty Index on the National Stock Exchange lost 0.8 percent to 3,974.05. The BSE 200 Index declined 1.3 percent to 1,627.41. Tata Steel fell 3.9 percent to 339 rupees. Hindalco retreated 3.4 percent to 70.3 rupees. JSW Steel Ltd., India’s third-biggest producer, fell 6 percent to 485.25 rupees. A measure of six metals traded on the London Metals Exchange, comprising copper, aluminum, lead, tin, zinc and nickel, fell 1.3 percent. ‘No Positive Trigger’ Investor expectations for the budget were high after Prime Minister Manmohan Singh won a re-election in May, reducing his dependence on allies such as the communist parties that opposed asset sales and looser foreign investment policies during his first term. “There is no positive trigger for the market,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. “Weak sentiment after last week’s budget is spilling over to this week.” Mukherjee said July 11 the nation’s central bank will act “as and when” needed on interest rates. “You cannot expect an omnibus reply, but as and when the situation will require appropriate action it will be taken,” he said at a press briefing after meeting central bank officials in New Delhi. The MSCI Asia Pacific Index dropped as much as 2.6 percent, the most since May 18. The gauge has lost 6.7 percent from an eight-month high on June 12 as optimism for a global economic recovery eased. ‘Worried’ “People are worried about the overall recovery globally,” Krishnakumar said. Reliance Industries Ltd., India’s most valuable company, declined 1.4 percent to 1,750.95 rupees. Jaiprakash Associates Ltd., the biggest maker of dams, fell 4.6 percent to 177.5 rupees. Larsen & Toubro Ltd., India’s largest engineering company, slid 2 percent to 1,330.1 rupees. Reliance Infrastructure Ltd., the second-biggest utility, lost 6.2 percent to 964.45 rupees. The earnings of Sensex companies may decline 6.8 percent in the quarter ended June, analysts Sanjeev Prasad, Bhavesh Shah and Sunita Baldawa of Kotak Securities Ltd. said in a research note today. Bajaj Hindusthan Ltd. and Balrampur Chini Mills Ltd. led declines among Indian sugar producers after the government said it may extend the period for duty-free imports of the sweetener. Duty Free Bajaj Hindusthan, Shree Renuka Sugars Ltd. and Balrampur Chini were among the worst performers on the broader BSE200 Index today. Bajaj Hindusthan, India’s biggest producer of the commodity by sales, dropped 12 percent to 132.45 rupees. Balrampur Chini, the country’s second-biggest, lost 8 percent to 92.35 rupees. Shree Renuka, India’s largest sugar refiner, dropped 7.3 percent to 124.45 rupees. India, the world’s biggest sugar consumer, may extend a temporary window for duty-free imports beyond Aug. 1 said a government official, asking not to be identified as the information is not public yet. Sun Pharmaceutical Industries Ltd. rose the most in three weeks after it reached an agreement with Forest Laboratories Inc. to drop a lawsuit challenging patents on the antidepressant Lexapro. Sun Pharmaceutical, India’s most valuable drugmaker, rose 2.8 percent to 1,146.35 rupees, the second-biggest gainer on the Sensex. Sun’s unit Caraco Pharmaceuticals was using the lawsuit to try to enter the market after Teva Pharmaceuticals Industries Ltd. failed in its effort to invalidate one of the patents, which expires in 2012 and covers the drug’s main compound, escitalopram. The patents are licensed to Forest by Danish drugmaker H. Lundbeck A/S, which also signed onto the agreement.