India’s Sensex Caps Biggest Weekly Loss in 3 Months, Banks Drop

Nov. 8 (Bloomberg) -- India’s benchmark stock index fell for a fourth day, capping its biggest weekly loss in three months, as the rupee dropped to a six-week low. Lenders and energy shares led the decline.

HDFC Bank Ltd. dropped 1.9 percent, leading a gauge of banking shares to a fifth day of losses, the longest losing streak since July. Oil & Natural Gas Corp. slid to a three-week low, leading a slide in the S&P BSE India Oil & Gas Index. Tata Motors Ltd., owner of Jaguar and Land Rover, which announced earnings after the market closed, rose for the first time in three days. The rupee weakened as much as 0.5 percent.

The S&P BSE Sensex fell 0.8 percent to 20,666.15 at the close in Mumbai. The index has lost 2.7 percent this week, the most since the week ending Aug. 4. The rupee is headed for its biggest weekly loss in more than two months, threatening to fan inflation and limit the central bank’s ability to cut interest rates and spur an economy growing at the slowest pace in a decade. The MSCI Asia Pacific Index fell after faster U.S. economic growth stoked concern the Federal Reserve will pare stimulus sooner than expected.

“My worry is the rupee-dollar equation,” Gaurang Shah, assistant vice president at Geojit BNP Paribas Financial Services Ltd., said on Bloomberg TV India. “We are advising clients to avoid any fresh long positions.”

Lenders Decline

HDFC Bank dropped to the lowest level in three weeks. Mortgage lender Housing Development Finance Corp. slipped 3.9 percent, the biggest loss since Sept. 23. The S&P BSE Bankex declined 1.3 percent.

ONGC decreased 2.2 percent to 277.35 rupees. The S&P BSE Oil & Gas Index closed at a three-week low.

Tata Motors rose 1.1 percent. The carmaker reported profit of 35.4 billion rupees ($565 million) for the quarter ended Sept. 30, higher than the 28 billion rupees estimated in a Bloomberg survey of analysts.

Net incomes at 17 of the 21 companies in the Sensex that have posted results exceeded analyst estimates, according to data compiled by Bloomberg. About 47 percent of the 30 companies in the index missed forecasts in the previous quarter.

Tech Mahindra Ltd. surged 6 percent after MSCI Inc. said in its semi-annual review yesterday that the stock will be added to the MSCI India Index after the close of trading on Nov. 26. The software maker yesterday reported net income of 7.18 billion rupees ($115 million) for the quarter ended Sept. 30, compared with the median estimate of 7.22 billion rupees in a Bloomberg survey of analysts.

Nestle India Ltd. and Yes Bank Ltd. will also be added to the index. Unitech Ltd., Bank of India, Canara Bank and Wockhardt Ltd. will be removed.

International investors bought a net $46.1 million of stocks on Nov. 6, extending this year’s purchases to $16.4 billion, the highest after Japan among 10 Asian markets tracked by Bloomberg.

The Sensex has risen 6.4 percent this year and trades at 13.7 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s 10.5 times.

The CNX Nifty Index fell 0.8 percent to 6,140.75.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at

To contact the editor responsible for this story: Michael Patterson at