Indian Stocks Snap Three-Day Rally, Led by Software Exporters

Feb. 11 (Bloomberg) -- India’s key stock index fell, capping a three-day, 6.1 percent rally. Tata Consultancy Services Ltd. led software exporters lower on concern the proposed U.S. bank rescue will fail to boost the sector’s biggest market.

Tata Consultancy, India’s largest software developer, fell 1.9 percent. Wipro Ltd., the No. 3, declined 1.7 percent. Bharti Airtel Ltd. led mobile-phone operators higher after they added 9.3 million customers last month.

“Even with $2 trillion in bailouts, the U.S. will still find it difficult to stem the rot,” said Jayesh Shroff, who helps manage $1.5 billion in equities at SBI Asset Management Co. in Mumbai. “They will have to bite the poison pill and create a bad bank to mop-up toxic assets.”

The Bombay Stock Exchange’s Sensitive Index, or Sensex, declined 28.93, or 0.3 percent, to 9,618.54. The S&P CNX Nifty Index on the National Stock Exchange slid 8.8, or 0.3 percent, to 2,925.70. The BSE 200 Index fell 0.1 percent to 1,127.30. S&P CNX Nifty futures for February delivery added 0.4 percent to 2,938.

Tata Consultancy fell 1.9 percent to 514.75 rupees. Infosys Technologies Ltd., the second-biggest software exporter, slid 0.5 percent to 1,301.90 rupees. Wipro Ltd. declined 1.7 percent to 221.95 rupees.

The U.S. Standard & Poor’s 500 Index slumped 4.9 percent yesterday amid skepticism the government’s bank rescue will work, even as Treasury Secretary Timothy Geithner pledged up to $2 trillion in financing for programs aimed at spurring new lending and addressing banks’ toxic assets. The U.S. accounts for more than half the revenue of software developers.

More Mobile Users

Bharti, the nation’s largest mobile-phone operator, gained 1.5 percent to 673.45 rupees. Reliance Communications Ltd., India’s second-largest operator, gained 1 percent to 173.30 rupees. Idea Cellular Ltd. added 5.4 percent to 47.60 rupees.

Bharti added 2.73 million users in January, while Idea added 2 million customers, according to the Cellular Operators Association of India, an industry group.

“Assuming Reliance Communications added 1 million GSM subscribers and a similar number of CDMA net additions, the overall wireless net additions for India in January would cross 12.5 million, making it the highest wireless net addition per month in the world,” Morgan Stanley said in a note to clients.

Tata Steel Ltd. led producers of the alloy lower after ArcelorMittal, the world’s biggest steelmaker, posted a fourth- quarter loss as prices slumped and the worldwide economic downturn curbed demand.

Steelmakers Drop

Tata Steel, India’s largest steelmaker, fell 3.4 percent to 190.15 rupees. JSW Steel Ltd., the No. 3 producer, slid 2.1 percent to 219.80 rupees. Jindal Steel & Power Ltd., an Indian steel and power producer, declined 2.3 percent to 1,051.05 rupees.

Overseas investors bought a net 2.89 billion rupees ($59.4 million) of Indian stocks on Feb. 9, according to the nation’s market regulator.

The following were among the most active shares traded on the Bombay and National stock exchanges. Stock symbols are in parentheses after company names:

Axis Bank Ltd. (AXSB IN) rose 2.4 percent to 430.95 rupees. The country’s fourth-biggest bank by market value will replace Zee Entertainment Enterprises Ltd. (Z IN) in the National Stock Exchange’s S&P CNX Nifty Index. The changes in the key index will be effective March 27, the exchange said. Zee dropped 12 percent to 113.90, the most since October.

Maytas Infra Ltd. (MAY IN) rose 5 percent to 54.15 rupees. The construction company run by the family of the former chairman of Satyam Computer Services Ltd. gained for the first time since Jan. 6 on a Business Standard report that Infrastructure Leasing & Financial Services Ltd. may take control. IL&FS holds about 20 percent of Maytas shares pledged to it by the Raju family, Business Standard said.

TTK Healthcare Ltd. (TTKP IN) gained 15 percent to 94.30 rupees, the most since January 2008. The Indian maker of herbal tonics and shoe-polish rose after announcing that a buyback offer will start on Feb. 18.

The company in July last year approved a plan to spend 110.6 million rupees to buy back its shares at not more than 120 rupees apiece.