Indian Stocks Decline for Second Day; Tata Motors, ITC Fall
Indian (SENSEX) stocks dropped for the second day, led by automakers and consumer goods companies.
Tata Motors Ltd. (TTMT), owner of Jaguar Land Rover, slid 2.8 percent ahead of its earnings report, leading a gauge of 11 automobile producers to a four-month low. Cigarette maker ITC Ltd. (ITC) headed to a six-week low. Tata Power Co. (TPWR), India’s biggest non-state generator, extended yesterday’s 15 percent slump after reporting a quarterly loss.
The S&P BSE Sensex retreated 0.8 percent to 18,582 at 9:48 a.m. in Mumbai, after changing directions four times. The rupee weakened to a record low yesterday, spurring speculation the central bank may tighten money supply further. The authority in July increased two borrowing costs, curbed funding support for banks and raised the daily reserve norms to shore up the rupee.
The rupee lost 0.8 percent to 61.29 per dollar today. The currency touched an unprecedented 61.8063 yesterday.
Tata Motors may report today consolidated net income of 22.2 billion rupees ($363 million) in the quarter ended June, from 22.4 billion rupees a year ago, according to the median of 39 analyst estimates compiled by Bloomberg.
About 44 percent of Sensex companies that have reported earnings so far for the June quarter missed analyst estimates. That compares with 27 percent for the three months ended March, and 43 percent in the quarter through December, data compiled by Bloomberg show.
Foreign investors bought a net $24.8 million of domestic shares on Aug. 5, a fifth straight day of net purchases, data from the regulator show. That takes this year’s inflow to $12.4 billion, the second-biggest among 10 Asian markets tracked by Bloomberg, the data show. Foreigners pulled $3 billion from stocks and bonds last month.
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