Oct. 12 (Bloomberg) -- India's Sensitive Index fell from a record after some investors judged the recent gains excessive. Reliance Industries Ltd. and Larsen & Toubro Ltd. declined.

``We are seeing some profit booking after the sharp rally we have witnessed,'' said Mihir Vora, who oversees about $734 million as head of equities at HSBC Asset Management (India) Pvt. in Mumbai.

Tata Consultancy Services Ltd. led software exporters lower after rival Infosys Technologies Ltd. yesterday gave its guidance for the year, which lagged behind the estimates of some analysts.

The Bombay Stock Exchange's Sensex fell 395.03, or 2.1 percent, to 18,419.04, its biggest drop since Aug. 21. The Sensex's relative strength index, a moving average based on advances and declines in the previous 14 days, has been above 70 since Sept. 19. A reading of 70 or more indicates to some analysts an imminent decline. The measure posted its eighth weekly gain.

The S&P/CNX Nifty Index on the National Stock Exchange slid 96.60, or 1.8 percent, to 5,428.25. Nifty futures for October delivery declined 1.6 percent to 5,456.10.

Reliance, which runs the world's third-biggest refinery, declined 62.8 rupees, or 2.4 percent, to 2,566.85. The stock's relative strength index has been above 70 since Sept. 18. Larsen & Toubro Ltd., the second-best performer on the Sensex this year, dropped 125.9 rupees, or 3.6 percent, to 3,360.75. Bharat Heavy Electricals Ltd., the third-best performer, fell 79.85 rupees, or 3.3 percent, to 2,341.35. The relative strength indexes for both stocks have been above 70 since Oct. 3.

Software Developers Decline

Tata Consultancy, the nation's largest software services company, slid 8.8 rupees, or 0.8 percent, to 1,063.1. Wipro Ltd., the third biggest, fell 1.65 rupees, or 0.3 percent, to 486.45. Satyam Computer Services Ltd., the fourth ranked, declined 9.35 rupees, or 2.1 percent, to 438.6. They will report earnings later this month. Infosys, the country's second-largest computer services provider, fell 45.55 rupees, or 2.3 percent, to 1,930.45, extending yesterday's 7 percent decline.

The Bombay Stock Exchange's information technology index fell 1.7 percent to 4,687.79, extending a 5.6 percent drop from yesterday.

Infosys yesterday had its biggest drop in more than three years after forecasting profit that missed some analyst estimates. Earnings per share may rise as much as 16 percent to 79.88 rupees ($2.03) for the year ending March 31, while sales are expected to gain 20 percent to 166.48 billion rupees, Infosys said. The forecasts trailed estimates by JPMorgan Chase & Co. and Deutsche Bank AG. and Lehman Brothers Inc.

``Margin pressures will remain for software companies as they struggle to mitigate wage hikes and currency gains with price increases,'' said Sanjay Dongre, who oversees about $1 billion in stocks at UTI Asset Management Co. in Mumbai.

Overseas investors bought a net 17.5 billion rupees ($433 million) of Indian stocks on Oct. 10, according to the latest figures on the Securities & Exchange Board of India's Web site.

The following shares rose or fell. Stock symbols are in brackets after company names:

HDFC Bank Ltd. (HDFCB IN) slid 25.6 rupees, or 1.8 percent, to 1,430.85, snapping a four-day, 4 percent advance. The nation's third-biggest bank by market value said fiscal second-quarter profit rose 40 percent as loans increased and it earned more fees for services. Net income rose to 3.68 billion rupees, higher than the 3.46 billion rupee median estimate of five analysts surveyed by Bloomberg.

Koutons Retail India Ltd. (KUTN IN) jumped 175.45 rupees, or 42 percent, to 590.45. The menswear retailer and manufacturer that raised 1.5 billion rupees selling shares at 415 rupees each started trading on Indian exchanges today.

Rolta India Ltd. (RLTA IN) rose 43.95 rupees, or 7.6 percent, to 625.75. The maker of design software gained after saying its board will meet Oct. 22 to consider giving stockholders free shares.

To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net.

Last Updated: October 12, 2007 07:02 EDT