India stocks slump over 2pc on worries over govt policies
AFP, Mumbai
Indian share prices slumped more than two percent Monday as investors dumped stocks amid sustained concerns over the new government's left-leaning economic policies, dealers said. They said worries over the oil price outlook after a weekend terrorist attack in Saudi Arabia and regional market weakness added to the negative tone. The BSE 30-share benchmark Sensex index was off 127.79 points or 2.64 percent at 4,707.60 in late morning trade but up from an early low of 4,665.21. The losses came on top of Friday's fall of 4.41 percent after Finance Minister Palaniappan Chidambaram tried but failed to reassure investors the communist- backed Congress government was committed to economic growth and reform. "It's a combination of two factors led by weak regional markets and concerns over the new government's revenue-raising ability as the new policy guidelines are likely to increase the fiscal deficit," said Venkat Iyer, director at RK Chary Stock Broking.
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