India Sensex Declines Amid Steady Selling by Overseas Investors
(Bloomberg) -- India stocks fell amid selling by foreigners as investors weighed their positions ahead of the outcome of general elections due next week.
The S&P BSE Sensex slipped 0.6% to 37,114.88 in Mumbai in the last half an hour of trade after an initial surge of as much as 0.7%. The NSE Nifty 50 Index also declined 0.6%. Overseas investors were sellers for the four consecutive sessions through May 13, data compiled by Bloomberg show.
Stock volatility has been steadily increasing in the last two months as the marathon election in the world’s largest democracy enters its final stage. The last phase of voting will take place on May 19 while the results will be announced on May 23.
- “The election outcome remains an overhang in the market. The pullback in the last session was led by value-buying by domestic investors as the index had corrected substantially,” said Anita Gandhi, a Mumbai-based director at Arihant Capital Markets Ltd. “Macro concerns relating to weak factory output numbers, a pick up in food inflation also remain in focus.”
- Sixteen of 19 sector sub-indexes compiled by BSE Ltd. fell, led by a measure of metal companies
- Housing Development Finance Corp contributed the most to the index decline.
- Yes Bank had the largest drop, falling 8.3% after the RBI named an additional director on the lender’s board
- Bajaj Finance provided the biggest boost to the index and had the largest gain, advancing 4.2%.
- Zee Entertainment Enterprises Ltd. fell 6.9%; company said rumors about resignation of company director from board were false.
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