The Bombay Stock Exchange Sensex fell today, snapping a three-day, 9.6 per cent advance as investors judged the recent gains excessive.
State Bank of India (SBI), the nation’s largest lender, retreated 3.8 per cent, halting a three-day gain of 10 per cent. Reliance Industries (RIL), India’s most valuable company, declined 2.1 per cent, ending a 15 per cent jump over the previous three days.
“Markets have seen a nice rally over the past few days,” said Shashank Khade, who helps manage $300 million at Kotak Securities in Mumbai. “Investors are booking profits.”
The Sensex fell 79.72 points, or 0.9 per cent, to 8,863.82. The S&P CNX Nifty Index on the National Stock Exchange slid 0.7 per cent to 2,757.45. The BSE 200 Index declined 0.7 per cent to 1,039.89. Tata Consultancy Services, India’s largest software developer, fell after its price target was cut at Deutsche Bank AG on concern falling demand will hurt earnings.
SBI fell 3.8 per cent to Rs 950.05. RIL dropped 2.1 per cent to Rs 1,300.20. HDFC, India’s largest mortgage lender, slid 2 per cent to Rs 1,364.60, snapping a five-day 21 per cent gain.
Tata Consultancy fell 4.3 per cent to Rs 497.55 after Deutsche Bank cut the price target 9.7 per cent to Rs 560. Tata Consultancy may report “flat” revenue growth in the year to March 2010, Deutsche Bank analyst Aniruddha Bhosale said in a note to clients today.