Sensex Sinks With Tata Motors as Profit Outlook Caps 2017 RallyBy and
Jaguar owner’s shares plunge after luxury unit misses estimate
Disappointing commentary may cloud Indian stock market’s rally
India’s stocks benchmark dropped, producing the biggest four-day decline since November, after the country’s largest automaker’s outlook disappointed investors.
The S&P BSE Sensex dropped 0.8 percent to close at a one-month low of 31,531.33 in Mumbai. Tata Motors Ltd. led decliners, falling 8.6 percent. The company said Wednesday after markets closed that margins at its Jaguar Land Rover missed analysts’ estimates.
Jaguar will also need to continue to offer discounts to win customers, Tata Motors said, adding to disappointing commentary from a unit of India’s largest drugmaker Sun Pharmaceuticals Industries Ltd. The announcements may cast a doubt on the trajectory of India’s stock market, where the Sensex’s 2017 gain was cut to 18 percent, after setting record highs.
“Investors are cautious at these elevated levels as earnings continue to remain weak,” said Abhimanyu Sofat, vice president at India Infoline Ltd. “The confidence level has been shaken a bit after the current selloff.”
The India VIX index, a measure of volatility, rose to the highest level since March after advancing for four straight days. Seventeen of 19 sub-indexes compiled by BSE Ltd. dropped, led by the property sector and industrials.
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