India Equities Snap Winning Run That Took Sensex to Record High
India Stocks Test Winning Run That Took Sensex to Record High
(Bloomberg) -- India’s benchmark index snapped its longest winning streak since March as some investors gauged the measure has gained too much, too quickly after it closed at a record high Monday.
The S&P BSE Sensex Index fell 0.1% to 40,248.23 at the 3:30 p.m. close in Mumbai after swinging between gains and losses at least four times following a seven-day winning streak. The NSE Nifty 50 Index fell 0.2%. The Sensex’s 14-day relative strength index rose to 71, above the level of 70 that some investors read as a signal to sell.
Foreign funds bought more than $2 billion of shares in October, the most in a month since March, according to data compiled by Bloomberg. Twenty out of 31 Nifty firms that have reported quarterly earnings this season have beaten or matched the average analyst estimate, while one didn’t have enough projections. Tech Mahindra Ltd. today after market reported results that beat estimates, while Titan Co.’s quarterly results missed.
Strategist View
“The ongoing corporate-earnings season and global developments are likely to dictate the market trend in the coming sessions,” said Ajit Mishra, vice president of research at Religare Broking Ltd. in New Delhi. “After a decent run up over the last few sessions, some consolidation cannot be ruled out in the near term.”
The Numbers
- Eighteen of 19 sector sub-indexes compiled by BSE Ltd. dropped, led by a gauge of consumer durables and healthcare companies.
- Infosys Ltd. was among the top loser on the benchmark index; Yes Bank Ltd. rose after billionaire investor Rakesh Jhunjhunwala bought shares in the lender.
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To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, James Cone
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