Indian Stocks Drop, Pare Monthly Advance, on Valuation Concern
Indian (SENSEX) stocks fell, paring a third monthly gain for the benchmark index, amid concerns the recent rally to a two-year high has made valuations expensive.
The BSE India Sensitive Index, or Sensex, slid 0.5 percent to 19,898.94, according to preliminary closing prices at 3:30 p.m. in Mumbai. Volumes on the gauge were 29 percent higher than the 30-day average. Reliance Industries Ltd. (RIL), the owner of the world’s largest refining complex, dropped 1.4 percent. Tata Power Co., the nation’s largest non-state-run generator, sank 2.4 percent. ICICI Bank Ltd. (ICICIBC), the biggest private lender, fell even as earnings beat estimates.
Traders rolled over fewer contracts in the S&P CNX Nifty Index (NIFTY) futures this month amid concern over stock valuations. Open interest, or the number of outstanding contracts in Nifty index futures, totaled 450,193 at 3:30 p.m. That compares with 550,713 on Dec. 27, when the December series expired, the data show. Derivative contracts in India expire on the last Thursday of each month.
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