India’s benchmark stock index tumbled the most in two weeks
India’s benchmark stock index tumbled the most in two weeks, led by Reliance Industries Ltd., after the government forecast economic growth would slow as higher interest rates curb consumer spending. Reliance Industries, the nation’s most valuable company, and Larsen & Toubro Ltd., the country’s largest engineering company, fell to two-week lows. Oil companies declined after Minister Murli Deora declined to say when the Cabinet would discuss retail pump prices for gasoline and diesel.
India, Asia’s third-largest economy, is expected to expand 8.7 percent in the year to March 31, the weakest pace since 2005, according to India’s statistics office. Growth was 9.6 percent in the last financial year. The central bank has raised interest rates nine times since October 2004 to contain inflation.