Most Indian stocks fell, led by automakers and utilities, after the benchmark index rose the most in Asia on Monday.
Mahindra & Mahindra Ltd. slid 1.9 percent after posting a drop in April tractors sales, Bajaj Auto Ltd. lost 1.3 percent after surging the most since May 2009. Tata Power Ltd. and Coal India Ltd. fell by at least 1.5 percent. Sesa Sterlite Ltd. rallied to a four-month high, sending the S&P BSE India Metal Index to its biggest gain in eight weeks.
The S&P BSE Sensex slid 0.2 percent to 27,440.14 at the close, after changing direction at least 12 times. The measure rebounded from a three-month low on Monday as automakers posted an increase in monthly sales and energy companies rallied. The index capped a second monthly loss in April on concern slowing earnings growth will spur capital outflows.
“The up and down moves show the market is consolidating, waiting for some positive triggers to emerge as most negatives have been priced in,” Jitendra Panda, chief executive officer at Peerless Securities Ltd., said by phone from Kolkata.
Mahindra slid to 1,179.25 rupees. Tractor sales in April fell 13 percent from a year ago to 18,011 units, the company said in a statement today. Tata Power fell 1.6 percent after climbing 2 percent on Monday, while Coal India rose 1.5 percent.
Sesa Sterlite jumped 6.7 percent, the best performance on the Sensex. Aluminum maker Hindalco Industries Ltd. surged 4.7 percent, the most since March 17, while Tata Steel Ltd. climbed 5.1 percent to a three-month high.
“Prices of many metals rose to a four-month high last week on talks of a stimulus package from China,” Chokkalingam G., managing director at Mumbai-based Equinomics Research Pvt., told Bloomberg TV India on Tuesday. “Metal stocks have been beaten down in the past year.”
Kotak Mahindra Bank Ltd. surged 6.3 percent, the most since November. The lender posted March-quarter profit that beat estimates and announced an issue of free shares.
Foreign investors sold a net $474.7 million of domestic shares over two days on April 30 and May 4. That pared this year’s purchases to $7.2 billion.
The Sensex has fallen 0.2 percent this year and trades at 15.2 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 12.5.