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 -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 $130.2m of Indian equities June 10; YTD total net $9.36b 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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