Indian shares dropped as technology stocks followed regional peers lower after Goldman Sachs Group Inc. cautioned on Friday that the industry’s share prices may not reflect risk.
The key S&P BSE Sensex and the NSE Nifty 50 indexes both fell 0.5 percent at 10:32 a.m. local time. Wipro Ltd. , India’s third-biggest software exporter, dropped 2.2 percent, the worst performer among Sensex companies.
“India has already seen a preview of the global disruption in the technology businesses that is in progress and the sell-off in bigger U.S. rivals only adds to the concerns,” Sanjay Sinha, founder of Mumbai-based Citrus Advisors, said on phone.
The rout in technology stocks began Friday when Robert Boroujerdi, Goldman’s global chief investment officer, warned that low volatility in Facebook, Amazon, Apple, Microsoft and Alphabet may be blinding investors to their risks.
Seven of the 13 sector gauges compiled by BSE Ltd. retreated, led by the S&P BSE Communication Technology and S&P BSE Information Technology index’s 0.9 percent decline.
A recent announcement by the Maharashtra government to waive of farm credits adds to investor concerns of an addition to the bad loans in the banking system, that is already the highest among major economies globally. “Credit discipline suffers due to these waivers and it is an economically regressive step,” Citrus’s Sinha said.
The S&P BSE Bankex dropped as much as 0.6 percent after Press Trust of India reported Sunday that Maharashtra state announced a farm-loan waiver, following a similar announcement in April by Uttar Pradesh, the country’s most populous province.