The Sensex fell the most in two months today, snapping a four-day rally that drove it to a two-year high, as investors judged gains outpaced the outlook for earnings growth.
The Bombay Stock Exchange’s Sensitive Index retreated 255.62, or 1.4 per cent, to 17,714.40, its steepest decline since February 5. A 14-day relative strength measure, showing how rapidly prices rose or fell during the specified period, was above 70 for the past three days. Some investors see readings above that level as a signal to sell.
The S&P CNX Nifty Index of the National Stock Exchange lost 1.3 per cent to 5,304.45. The BSE 200 Index declined 1.2 per cent to 2,230.91.
Tata Motors Ltd, the nation’s biggest truck maker and owner of Jaguar Land Rover Ltd, dropped the most in two weeks. Hindalco Industries Ltd, the biggest aluminum producer, had its steepest decline in two months.
The Sensex has gained 9 per cent since Finance Minister Pranab Mukherjee on February 26 pledged to trim the fiscal deficit from a 16-year high and boost funds for roads, bridges and power projects needed to sustain economic growth.
