India's Sensex Drops From Record as Energy Firms Decline
(Bloomberg) -- India’s benchmark index fell as some investors stepped back from the rally that’s driven the measure to new record closing levels for eight of the last 11 trading sessions.
The S&P BSE Sensex fell 0.1 percent to 37,665.80 at close in Mumbai, with 18 of its 31 constituents falling as worries over sanctions and global trade tensions lingered. As many as 12 out of the 19 sectoral sub-indexes compiled by BSE Ltd. declined, led by gauges of energy and oil & gas companies. Adani Ports and Special Economic Zone Ltd. was the worst after its quarterly profit missed the lowest analyst estimate. Coal India Ltd. also lost 2 percent.
So far, of the 37 NSE Nifty 50 companies that have announced results, 22 have either met or exceeded average analyst estimates. The Sensex has advanced 11 percent this year, holding its place as Asia Pacific’s best performing market. However, this hasn’t translated into big gains for all, with only a handful of S&P BSE Sensex members keeping up with the record-setting rally.
“The commodities cycle is challenging as firms are unable to pass on a rise in raw material costs,” Abhimanyu Sofat, head of research at India Infoline Ltd., said by phone. “The trade war has an impact on the sentiments.”
The S&P BSE mid cap gauge snapped its longest winning streak this year. The index of small cap companies fell for the first time in 13 sessions.
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