Sensex snaps losing streak; rupee climbs

India’s benchmark equity gauge ended two days of declines, after swinging at least 28 times between gains and losses, as a rally in property developers outpaced declines in healthcare shares.The S&P BSE Sensex closed up 0.01% to 29,921.18 points at the close in Mumbai yesterday, below a record reached on Wednesday. It swung between a high of as much as 0.5% and a low of as much as 0.4%. Oil & Natural Gas Corp, the nation’s biggest energy explorer, was the best performer on the index after saying it’s in talks with a Venezuelan producer for a $760-mn financing. Drugmaker Lupin Ltd dropped 2.6% making it the biggest loser on the index.The rally that pushed the Sensex to a fresh record on Wednesday has made valuations the most expensive this decade. Overseas investors have been trimming their positions, selling shares on a net basis for 12 of the 14 sessions through Thursday. The India VIX Index, a gauge of expected stock-price swings, climbed by the most since January.“Indian markets can see a correction if there is any geopolitical fallout or if the forecast for rains doesn’t cheer investors,” said Deepak Jasani, head of retail research at Mumbai-based HDFC Securities. The “momentum of selloff” from foreigners will dictate how much share prices fall, he said.Local funds have purchased about $1.8bn of Indian stocks in the first three months of this year, while overseas investors have bought a net $6.5bn through April 27.The next official projection for the monsoon season is due in June, when rainfall typically starts. Last month, government forecasters predicted the country will see a normal monsoon for a second consecutive year.Eight of the 13 sector gauges compiled by BSE rallied, paced by the S&P BSE Realty Index. The gauge of property developers climbed 2%, extending gains this year to 55%. The S&P BSE Healthcare Index dropped 0.8%.Federal Bank +4.6%; extends April 28 rally of 14% as 4Q net income topped estimates, provisions declined. JSW Energy -7.2%; steepest on S&P BSE 200 Index, volume was 3.4 times its 3-month full-day average; 4Q net income plunged 92% from a year earlier. Kitex Garments -18%; most on S&P BSE 500 Index, volume 10 times its 3-month full-day average as 4Q net income dropped 40%.Reliance Defence +4.6%; steepest gain since March 23; gets approval to exit debt-restructuring plan. Meanwhile the rupee on yesterday strengthened marginally against the US dollar, ahead of the outcome of two day US federal reserve meeting.The rupee was trading at 64.17 a dollar, up 0.13% from its Friday’s close of 64.25. The rupee opened at 64.14 a dollar and touched a high of 64.12. On Monday, markets were closed due to World Labour Day.The central bank is scheduled to release its policy decision at 11.30pm today. Fed is expected to hold interest rates steady at its meeting this week as it pauses to parse more economic data but may hint that it is on track for a rate hike in June, according to reports.So far this year, the rupee has gained 6%, while foreign investors bought $6.53bn and $7.55bn in local equity and debt markets, respectively.The 10-year bond yield was trading at 6.987% compared to its previous close of 6.963%. Bond yields and prices move in opposite directions.Asian currencies were trading higher. South Korean won was up 0.83%, Taiwan dollar 0.75%, Malaysian ringgit 0.31%, Singapore dollar 0.19%, Thai baht 0.15%, Indonesian rupiah 0.12% and Philippines peso 0.06%.The dollar index, which measures the US currency’s strength against major currencies, was trading at 99.048, down 0.03% from its previous close of 99.077.