India’s Sensex Ends Six-Week Advance as Software Exporters FallRajhkumar K Shaaw
India’s benchmark stock index ended a six-week rally on concern the gains have outpaced the outlook for company earnings.
Tata Consultancy Services Ltd., the nation’s top software exporter, declined the most in seven weeks. Steel Authority of India Ltd. fell after the government trimmed its stake in the company. Dr. Reddy’s Laboratories Ltd. led drugmakers lower.
The S&P BSE Sensex fell 0.4 percent to 28,458.10 at the close in Mumbai, taking the weekly loss to 0.8 percent. The gauge gained to a record on Nov. 28 on optimism easing price pressures may prompt the central bank to cut interest rates. The Reserve Bank of India left borrowing costs unchanged earlier while signaling a possible reduction early next year.
“Some investors and traders were expecting the RBI to cut rates, which didn’t happen and that led to paring of some positions,” D.K. Aggarwal, chairman of SMC Investments & Advisors Ltd., said by phone from New Delhi today. “We see the market consolidating and there are no new triggers for now.”
Tata Consultancy retreated 2.2 percent. Infosys Ltd., the second-largest software exporter, slid for a sixth day. Wipro Ltd., the third-biggest, declined 2.3 percent.
Steel Authority slid 2.8 percent to 82.90 rupees after the government’s offer to sell 206.5 million shares, or 5 percent of its stake, was oversubscribed 1.51 times as of 2:55 p.m. The shares were sold to big investors at 83.4 rupees versus a floor price of 83 rupees.
Dr. Reddy’s tumbled 2.3 percent to a one-month low. Sun Pharmaceutical Industries Ltd., the nation’s most valuable drugmaker, fell 2.1 percent. Cipla Ltd. decreased 1.8 percent, the most since Nov. 14.
Redington (India) Ltd., a distributor of Apple Inc. iPhones, rallied 5.4 percent to a record. Apple is said to have “tentatively approved” 500 new iOS stores in India including move to smaller towns, cities, the Economic Times reported, citing unidentified people familiar with the matter.
Foreigners bought a net $103 million of local shares on Dec. 4, taking this year’s inflows to $16.6 billion. Indian equities attracted $19.7 billion last year and a record $24.5 billion in 2012, data compiled by Bloomberg show.
The Sensex has risen 34 percent this year and is valued at 15.8 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.2.