India’s Sensex Index Declines; Larsen, Tata Consultancy Fall

India’s stock declined, with the benchmark index retreating from its highest level in 2 1/2 years as some investors judged recent gains may be overdone.

Larsen & Toubro Ltd., the largest engineering company, dropped for the first day in five. Foreign fund inflows to India’s equities have increased 60 percent this year, making the benchmark index the most expensive in Asia and among the BRIC markets that also comprise Brazil, Russia and China. The 14-day relative strength index of the main stock gauge climbed to 82.9 yesterday, the highest since October 2007, according to data compiled by Bloomberg. Some investors regard readings above 70 as a signal to sell. Tata Consultancy Services Ltd., the largest software services exporter, fell.