India’s benchmark stock index declined to a five-week low amid losses in regional equities and as quarterly earnings at some companies missed analysts’ estimates.
Housing Development Finance Corp., the biggest mortgage lender, slid to a two-week low after its results. ICICI Bank Ltd., the largest private lender, decreased for a fourth day. Tata Motors Ltd., owner of Jaguar Land Rover, tumbled to its lowest level in 17 months.
The S&P BSE Sensex decreased 0.4 percent to 27,459.23, its lowest close since June 19. The gauge changed direction about 15 times ahead of the expiration of derivative contracts on Thursday. Chinese shares extended the biggest one-day selloff since 2007, sending emerging-market stocks to a fifth day of losses. Eight of the 12 Sensex firms that have posted results for the June quarter have matched or beaten estimates, versus 40 percent in March, data compiled by Bloomberg show.
“Investor sentiments has been subdued due to the crash in China, company earnings not being great and the Federal Reserve meeting” starting Tuesday, said Paras Bothra, vice president of equity research at Ashika Stock Broking Ltd. Volatility may persist as “the expiry is around the corner,” he said.
Housing Development slid 2.4 percent to its lowest level since July 10. The mortgage lender reported first-quarter net income of 13.6 billion rupees ($213 million), matching estimates. ICICI Bank retreated 2.1 percent.
Tata Motors lost 2 percent, taking this year’s drop to 25 percent. Jaguar Land Rover, which gets about a quarter of its sales from China, has pared its sales target and prices amid slowing demand in the world’s largest auto market.
Bharat Heavy Electricals Ltd., the largest maker of power equipments, rose 2.5 percent. The stock tumbled 4.5 percent in three days through Monday. Larsen & Toubro Ltd., the largest engineering company, added 0.9 percent.
Global funds sold a net $118.5 million of local stocks on Monday, July 27, paring the year’s inflows to $7.38 billion.
The Sensex has fallen 0.2 percent this year and trades at 15.4 times projected 12-month earnings. The MSCI Emerging Markets Index is valued at a multiple of 11.1.