Mumbai - Arabstoday
Indian stocks dropped the most in Asia after the European Central Bank\'s balance sheet soared to a record, fuelling concerns the debt crisis in the Asian nation\'s biggest trading partner is worsening. Reliance Industries, the nation\'s most valuable company, sank to its lowest since March 2009. Tata Power, the biggest electricity generator outside state control, fell for the first time this week. Maruti Suzuki India retreated 3.9 per cent, extending this year\'s plunge to 35 per cent. The BSE India Sensitive Index, or Sensex, retreated 1.2 per cent to 15,543.93 at the 3:30 pm close in Mumbai. Big export market The gauge has slumped 24 per cent in 2011, heading for the second-largest annual loss in three decades, on concern a falling rupee, inflation and record interest-rate increases will worsen the effects of the European crisis on corporate earnings. The European Union accounts for about 20 per cent of India\'s exports. \"The global issues are not going to change in a hurry and I don\'t see a solution coming up immediately,\" Anup Bagchi, chief executive officer of ICICI Securities, said in an interview with Bloomberg UTV yesterday. The 30-stock gauge trades at 13.5 times estimated profits, down from 21.5 times in March 2010. The MSCI Emerging Markets Index is valued at 10 times after dropping 21 per cent this year. Global equities slumped yesterday after the ECB\'s balance sheet rose to an all-time high of €2.73 trillion (Dh13.06 trillion). The central bank awarded 523 banks three-year loans last week totalling a record €489 billion to encourage lending and stem the region\'s debt crisis. The banks, reluctant to lend, have parked the money back at the ECB. Overnight deposits at the central bank have increased to an all-time high of €452 billion. The S&P CNX Nifty Index on the National Stock Exchange of India lost 1.4 per cent to 4,646.25. The BSE 200 Index fell 1 per cent. Reliance Industries, owner of the world\'s largest refining complex, sank 3.7 per cent to Rs711.9, extending this year\'s loss to 33 per cent. Tata Power tumbled 3.8 per cent to Rs88.5, ending a three-day 4.5 per cent rally. Maruti plunged 3.9 per cent to Rs921.75.