Indian Stocks End Six-Day Rally as Software Exporters Decline

India’s benchmark stock-index fell, ending a six-day rally, as technology companies and metalmakers slid amid declines in emerging-market equities.

Tata Consultancy Services Ltd., the country’s top software maker, dropped the most in three weeks. Bharti Airtel Ltd., the largest mobile-services company, declined for the first time in four days. Hindalco Industries Ltd. and Sesa Sterlite Ltd., two of India’s biggest aluminum and copper producers, decreased at least 1 percent.

The Sensex lost 0.2 percent to 27,842.32, after changing direction at least six times and erasing a gain of as much as 0.6 percent. The MSCI Emerging Markets Index slid for a third day as speculation that Greece may exit the European currency union cooled demand for riskier assets. Indian technology companies get more than half of their revenue from overseas.

“Software stocks declined because of weak global cues,” Jitendra Panda, chief executive officer at Peerless Securities Ltd., said by phone from Kolkata. “Investors are also waiting for the quarterly earnings number before taking big bets.”

Infosys Ltd., the nation’s second-largest software maker, will kick off the earnings season for the three months ended Dec. 31 on Jan. 9. Profits at 67 percent of the 30 Sensex firms beat or matched analyst estimates in the September quarter, versus 46 percent in the three months ended June and 60 percent in March, data compiled by Bloomberg show.

Tata Consultancy declined 1.5 percent to 2,540.25 rupees, the most since Dec. 15. Infosys lost 0.9 percent.

Bharti Airtel dropped 2.2 percent, the most since Dec. 17. Idea Cellular Ltd., tumbled 4 percent, the steepest loss since Oct. 16, while Reliance Communications Ltd. lost 1.5 percent before a Cabinet meeting later to discuss spectrum pricing.

CBI Raid

IRB Infrastructure Developer Ltd. tumbled 8.4 percent, the most since July 8, after the Central Bureau of Investigation raided its offices in Pune, Bloomberg TV India reported citing people it didn’t identify. Three calls made to Chairman Virendra Mhaiskar on his mobile phone weren’t answered.

Axis Bank Ltd. climbed 0.6 percent even as the 12-member S&P BSE Bankex dropped 0.3 percent.

State-owned lenders have asked for setting up of a holding company for the government’s stake in 27 banks, Hasmukh Adhia, banking secretary, told reporters in Pune, near Mumbai on Jan. 3. “Banks demanded it and the finance minister said we will consider all suggestions positively,” he said.

The India VIX Index, a measure of protection against stock market swings, gained 2.6 percent to 14.15. The advance was the first in three days. The CNX Nifty Index lost 0.2 percent.

The Sensex climbed 30 percent in 2014, the biggest annual gain in five years and the best performance among the world’s 20 biggest markets after China. Foreigners bought a net $4.4 million of local shares on Jan. 1, adding to $16 billion of stock purchases last year.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE