Indian stocks swung between gains and losses. Carmakers advanced as software exporters declined.
Tata Motors Ltd. (TTMT), owner of Jaguar Land Rover, and Maruti Suzuki India Ltd. (MSIL), the nation’s biggest carmaker, climbed more than 2.5 percent each. Tata Consultancy Services Ltd. (TCS), India’s largest software exporter, fell to a one-week low. Drugmaker Sun Pharmaceutical Industries Ltd. (SUNP) slid the most in 17 months.
The S&P BSE Sensex rose less than 0.1 percent to 18,674.74 at 9:26 a.m. in Mumbai. Indian shares have dropped 3.4 percent this week as the rupee approached a record low, raising concern that the central bank may tighten cash supply to support the currency. The Nifty index fell to 13 times estimated earnings for the next 12 months from a multiple of 14 last month, data compiled by Bloomberg show. Foreign investors bought a net $58 million of local shares on Aug. 6, a sixth straight day of purchases, data from the regulator show. Indian (SENSEX) bourses are shut tomorrow for a holiday.
The Reserve Bank of India tightened banks’ access to cash on July 23 to support the rupee, which fell 0.9 percent to 61.3 per dollar yesterday. It raised two interest rates and drained liquidity on July 15.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at firstname.lastname@example.org