By -
Jun 10, 2014
India’s benchmark stock index fell
from an all-time high amid concern the rally that made it the
best performer among emerging markets this year has exceeded the
outlook for earnings.
Engineering company Larsen & Toubro Ltd. (LT) halted a six-day, 13 percent surge. Oil & Natural Gas Corp. (ONGC) dropped the most in three weeks. Aluminum producer Hindalco Industries Ltd. (HNDL) slid the most in two weeks, pacing losses among its peers. The top five gainers on the benchmark S&P BSE Sensex (SENSEX) this year dropped more than 1 percent each.
The Sensex lost 0.7 percent to 25,402.07 at 10:39 a.m. in Mumbai. The gauge has risen 20 percent this year amid optimism Prime Minister Narendra Modi will boost spending and speed up project clearances to revive growth from near a decade low. The gauge trades at 15.6 times projected 12-month profits, the most expensive times since January 2011, data compiled by Bloomberg show. The new government is due to present it annual spending plan early next month.
“We’ve had a fabulous run so just take some chips of the table until the budget tells you how the government plans to make things happen,” Anil Ahuja, chief executive officer at Singapore-based IPEplus Advisors, said in an interview with Bloomberg TV India today. The market is “expensive,” he said.
The Sensex rallied to a record for a third day yesterday, sending its 14-day relative strength index to 79.6, the highest reading in two weeks, data compiled by Bloomberg show. Some investors see readings above 70 as a signal to sell.
“The rain gods could play havoc,” Ahuja said.
Modi will make curtailing food inflation his top priority, President Pranab Mukherjee said yesterday, outlining the two-week-old government’s policies.
Foreign investors bought a net $578.7 million of domestic shares on June 6, taking this year’s inflows to $9 billion, the most among eight Asian markets tracked by Bloomberg.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar, Matthew Oakley
Engineering company Larsen & Toubro Ltd. (LT) halted a six-day, 13 percent surge. Oil & Natural Gas Corp. (ONGC) dropped the most in three weeks. Aluminum producer Hindalco Industries Ltd. (HNDL) slid the most in two weeks, pacing losses among its peers. The top five gainers on the benchmark S&P BSE Sensex (SENSEX) this year dropped more than 1 percent each.
The Sensex lost 0.7 percent to 25,402.07 at 10:39 a.m. in Mumbai. The gauge has risen 20 percent this year amid optimism Prime Minister Narendra Modi will boost spending and speed up project clearances to revive growth from near a decade low. The gauge trades at 15.6 times projected 12-month profits, the most expensive times since January 2011, data compiled by Bloomberg show. The new government is due to present it annual spending plan early next month.
“We’ve had a fabulous run so just take some chips of the table until the budget tells you how the government plans to make things happen,” Anil Ahuja, chief executive officer at Singapore-based IPEplus Advisors, said in an interview with Bloomberg TV India today. The market is “expensive,” he said.
The Sensex rallied to a record for a third day yesterday, sending its 14-day relative strength index to 79.6, the highest reading in two weeks, data compiled by Bloomberg show. Some investors see readings above 70 as a signal to sell.
El Nino
Stocks also declined amid concern inadequate monsoon rain will hurt farm output, potentially boosting inflation. Showers during the June-September period, crucial for crops from sugar to rice and cotton, will be 93 percent of a 50-year average, the state-owned weather office said on its website yesterday. That’s less than 95 percent of the average predicted in April.“The rain gods could play havoc,” Ahuja said.
Modi will make curtailing food inflation his top priority, President Pranab Mukherjee said yesterday, outlining the two-week-old government’s policies.
Foreign investors bought a net $578.7 million of domestic shares on June 6, taking this year’s inflows to $9 billion, the most among eight Asian markets tracked by Bloomberg.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar, Matthew Oakley
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