Bloomberg
Indian stocks tumbled the most in a week, led by industrials and energy companies, after data showed foreigners sold local shares for a 10th day and as monthly derivatives contracts expired.
Bharat Heavy Electricals, the biggest power-equipment maker, fell the most in two weeks. NTPC, the largest power producer, halted a four-day, 12% rally, while Coal India, the world’s top miner of the fuel, slid for a second day. Dr Reddy’s Laboratories Ltd dropped to an eight-week low.
The S&P BSE Sensex retreated 1.1% to 27,208.61 at the close, with a bulk of the declines coming in the last half hour. The gauge is set for its worst month since February 2013 as foreigners pulled $1.04bn from local shares in 10 days through December 22, the longest run of outflows since June 2012, as falling oil prices and Russia’s currency crisis sparked a selloff in emerging markets.
“There will be choppiness because it’s expiry day and a truncated week,” Gaurang Shah, vice president at Geojit BNP Paribas Financial Services, told Bloomberg TV India yesterday.
The markets are closed tomorrow for Christmas, bringing forward the derivatives futures expiry by a day.
Traders replaced a smaller proportion of December futures on the CNX Nifty Index with January contracts. Lower rollovers signal caution over stock prospects at the start of next year, Megha Vazkar, the Mumbai-based head of institutional dealing at Maximus Securities Ltd, said in a phone interview. The gauge fell 1.1% to 8,174.1.
“People covered their positions after Nifty broke 8,200, triggering the fall,” Hemen Kapadia, senior vice-president for institutional equity at K R Choksey Securities, said in an interview to Bloomberg TV India. “There’s support at 8,150 but the bigger picture still that of a correction.”
Bharat Heavy decreased 2.7%, the worst performance on the Sensex. NTPC declined 2.5%, the most since December 16, while Coal India fell 1.7%. Dr Reddy’s retreated 2.2%, the biggest fall since October 30.
Reliance Capital, which has partnered Nippon Life Insurance Co for an insurance venture, surged 3.8%, the most since December 10, after the cabinet cleared an ordinance to increase foreign investment in the sector to 49% from 26%. Max India, the Indian partner of MS&AD Insurance Group Holdings, Japan’s biggest casualty insurer, advanced 1.8% to its highest level since December 15.
The Sensex has risen 30% this year, poised for its biggest annual performance since 2009. Foreigners have bought $16.3bn of shares, the highest among eight Asian markets tracked by Bloomberg, after Japan.