India Stocks Decline on Valuation Concerns; Larsen Leads Drop
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India’s benchmark stock index fell from close to a record high as some investors judged the recent rally has surpassed the outlook for earnings.
Larsen & Toubro Ltd., the largest engineering company, dropped the most in more than three months. The shares are trading at 32.2 times estimated earnings compared with 19.4 times for the main stock gauge. Foreign fund inflows have surged 71 percent this year, making the stock gauge the most expensive in Asia and among the BRIC markets that also include Brazil, Russia and China. Reliance Communications Ltd., the second-biggest mobile-phone operator, declined for the first time in six days.