India’s Sensex Declines From Record as Power Producers Retreat

Benchmark S&P BSE Sensex falls 1st time in five days as power utilities and industrials decline. * Sensex -0.4% to 25,473.89 at close after climbing to all-time high of 25,735.87 earlier * Investors booking profit as broad market overbought amid high expectation from Modi govt., Alex Mathews, head of research at Geojit BNP Paribas Financial Services, said by phone from Kerala ** NOTE: Sensex rallied 8% in May, best monthly advance since Oct., after Narendra Modi’s BJP won strongest electoral mandate in 30 years; gauge +20% YTD, trades at ~15.7x projected 12-mo. profits, most expensive in 3 1/2 years; its 14-day RSI at 75.8; some investors see reading >70 as signal to sell * State-owned NTPC -3.3%, biggest decline since Feb. 24; Tata Power (SENSEX) -4.9%, most since Aug. 16; stk biggest loser on Sensex; BSE India Power Index -2.8%, the most since May 26 * Copper producer Sesa Sterlite -1.9%; stk climbed to 3-year high June 5; aluminum maker Hindalco -4.2%, most since April 15 * L&T Finance Holdings -5%, most since April 3, after minimum price for founder Larsen & Toubro’s stake sale set at 74 rupees vs yday close of 81.9 rupees * Infosys +3.8%, biggest gain since Oct. 11 on ex-CEO return talk; bigger rival Tata Consultancy +2.3%; Dr. Reddy’s +1.5% * CNX Nifty -0.4%; BSE 100 -0.7%; BSE 500 -0.7% * BSE 100 gainers: Kotak Mahindra Bank +3.2% after stk raised to buy from hold at Deutsche Bank; Godrej Cons +3%; Glenmark +1.9%; Hero MotoCorp +1.5%; Asian Paints +1.4% * BSE 100 losers: HDIL -8.4%, Unitech -7.2%, Jaiprakash Associates -5.4%; GMR -5.3%; DLF -5.3% * Index movers incl. IT +2.2%, Communications Technology +1.3%, Healthcare +0.3%; Consumer Durables -2.1%, Metal -2.7% * Volume above 3-mo. full-day avg: UBBL 6.1x 3-mo. avg; NHPC 4.1x, UNSP 2.9x, TGBL 2.6x, GMRI 2.4x, TTAN 2.3x, APNT 2.2x, IDBI 2.1x, INFO 2x, IDEA 2x, * Foreigners bought net $98.7m of Indian equities June 9; YTD total net $9.2b purchases * NOTE: The BSE’s Sensex calculation system suffered technical glitch for ~20 mins after trading began at 9:15 a.m.; trades were unaffected by problem, exchange said in statement * Rupee +0.1% to 59.2537 * MXAP Index +0.4%

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