India’s Sensex Drops Before Derivatives Expiry as ONGC Declines

Sensex -0.2% at 25,313.74 * CNX Nifty -0.1%, volume 45% below 30-day avg.; BSE 100 -0.1%; BSE 500 little changed * Rupee ends little changed at 60.1325 per dollar after earlier weakening to one-week low on concern higher global oil prices, inadequate rainfall will spur inflation * BSE 100 gainers: Ashok Leyland +6%, Rural Electrification +4.5%, Power Finance +3.3% * BSE 100 decliners: Yes Bank -3%, Idea Cellular -2.7%, Oil & Natural Gas Corp -1.4%, JSW Steel Ltd -1.4% * Monsoon, higher oil prices are “short-term headwinds” for mkt, Jeff Chowdhry, head of emerging-market stocks at London-based F&C Asset Management, which oversees about $150b, tells Bloomberg TV India; foreign investors to favor India if govt. “pushes reforms” to tackle budget deficit and subsidies * NOTE: Govt. to present federal budget on July 10; PM Narendra Modi says he’s prepared to take unpopular measures to revive economy growing at near 10-yr low; retail inflation averaging ~10% in past 2 years * NOTE: Rains 38% below normal since June 1: weather office * Index movers incl. Consumer Durables +0.2%, Realty -0.1%, Healthcare +0.2%; Capital Goods +0.3%, Bankex -0.2% * Maruti +2.3%; Mahindra & Mahindra +1.1%; TVS Motor +2.7%; Bajaj Auto +2.5% after finance minister Arun Jaitley extended excise duty cuts by 6 mos. * DLF -0.9% after antitrust body orders probe on office property * Volume above 3-mo. full-day avg: AL 3.5x 3-mo. avg; SHTF 2.4x, UBBL 2.4x, RCOM 1.8x, IDEA 1.8x, GAIL 1.8x, EXID 1.4x, TTAN 1.4x, ONGC 1.3x, TGBL 1.3x, * Monthly derivatives contracts expire tomorrow * Foreigners bought net $6.2m of Indian stks June 24; YTD total net $9.8b purchases * MXAP Index -0.3% * NOTE: Sensex YTD +19.6%

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