Indian Stocks Halt Five-Day Rally

(Bloomberg) -- Indian equities declined, halting a five-day rally, as shares from Tokyo to Sydney slipped on concerns about global economic growth after the IMF trimmed its global growth forecast to the weakest in three years.

The benchmark S&P BSE Sensex dropped 0.4 percent to 36,444.64 at the 3:30 p.m. close in Mumbai, capping its first decline in six days. The NSE Nifty 50 Index also fell 0.4 percent.

Regional markets retreated as optimism on U.S.-China talks faded. Investors in India are focused on policy initiatives and political rhetoric ahead of a national election expected from April, even as companies continue to report earnings for the last quarter of 2018.

Indian Stocks Halt Five-Day Rally

Strategist Views

  • “Elections will make the markets volatile from March, when dates will be announced,” said Avinash Gorakshakar, head of research at Joindre Capital Services Ltd. in Mumbai.
  • “Global markets trends from U.S. and China are also likely to impact Indian markets selectively on a moderate basis.”
  • Cloudy outlook on growth and trade damped risk appetite which led to a drop in markets across the globe, said Viral Berawala, chief investment officer at Essel Finance Asset Management Ltd. “On back of these cues, Indian markets traded negative.”

The Numbers

  • Thirteen of the 19 sector indexes compiled by BSE Ltd. retreated, paced by a gauge of metal stocks.
  • Twenty-one of the 31 Sensex members and 31 of the 50 Nifty companies declined.
  • Net incomes of seven of the ten Nifty companies that have reported earnings so far have either topped or matched analyst estimates, according to data compiled by Bloomberg.
  • Metal firms Vedanta Ltd. and Tata Steel Ltd. retreated more than 3 percent, the steepest among Sensex and Nifty members.
  • Sun Pharmaceutical Industries Ltd. climbed 5.2 percent, the most among Sensex and Nifty members, as the nation’s top drug maker announced some changes to address concerns about its governance practices.
  • Software firm Zensar Technologies Ltd. dropped 5.2 percent after posting third-quarter net income that trailed estimates.

Analyst Notes/Market-Related Stories

  • Hindustan Zinc Continues to Disappoint on Volumes: Prabhudas
  • Sun Pharma Kept at Buy at Jefferies Despite Governance Overhang
  • Nestle India Rated New Outperform at Macquarie; PT 12,994 Rupees

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