Indian stocks slipped from a record on political uncertainty for prime minister Modi’s Bharatiya Janata Party (BJP) and the completion of a re-balancing of the MSCI ACWI index.
The S&P BSE Sensex slipped 0.2% to 40,821.30 at the close in Mumbai and the NSE Nifty 50 Index fell 0.3%.
Shares fell after a coalition government led by the BJP collapsed in the western Indian state of Maharashtra after it failed to gain a majority. The South Asian nation’s top court had earlier ordered the party to prove it had enough support to form the state government.
Meanwhile ICICI Bank Ltd closed at a record, climbing 2.6% to 510.7 rupees after its weightage on the MSCI ACWI index was increased.
“The Maharashtra floor test tomorrow is a short-term risk factor ” said Sameer Kalra, founder at Target Investing in Mumbai, an investment advisor in Mumbai. “The MSCI re-balancing was also completed today, which led to some outflows, ICICI Bank was the only one whose weightage grew.”
Sixteen of 19 sector sub-indexes compiled by BSE fell, led by a gauge of telecom companies. ICICI Bank contributed the most to the index advance with a 2.6% jump and performed the best; Bharti Airtel Ltd was the biggest drag on the index with a 4.3% slump.