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Business News/ Market / Stock-market-news/  Sensex falls most in nearly 3 weeks as rupee drops on global rout
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Sensex falls most in nearly 3 weeks as rupee drops on global rout

Sensex tumbled 1.6% to close at 25,480.84; rupee lost 1% to close at 61.19 per dollar

At 3.30pm, the Sensex shed 1.60%, or 414.13 points, to close at 25,480.84. Photo: Hemant Mishra/MintPremium
At 3.30pm, the Sensex shed 1.60%, or 414.13 points, to close at 25,480.84. Photo: Hemant Mishra/Mint

Mumbai: Indian stocks fell the most in three weeks, with the benchmark BSE Sensex halting two weeks of advance, amid a global equity sell-off and on concern local share prices have exceeded the outlook for profit.

Tech Mahindra Ltd and Titan Co. Ltd, a maker of watches and jewellery, dropped after their net incomes missed estimates. NTPC Ltd slid to a two-month low. Larsen and Toubro Ltd (L&T) declined for a fifth day, the longest streak of losses in three months. The rupee fell the most in six months.

The S&P BSE Sensex tumbled 1.6% to 25,480.84 at the close, taking the weekly loss to 2.5%. The gauge added 1.9% in July, a sixth monthly advance and the longest run of gains since January 2007. Emerging market stocks headed for the biggest weekly loss in four months as weaker earnings and Argentina’s default reduced investor demand for riskier assets. The Stoxx Europe 600 Index fell 1.4% in London.

Tech Mahindra retreated 1.1% to a two-week low. Net income of 631 crore trailed the 676 crore estimated by analysts. Titan tumbled 4.4%, the most in three weeks, after posting profit of 177 crore, less than the estimate of 195 crore.

L&T tumbled 2.1%, extending this week’s retreat to 11%, the most on the Sensex. NTPC declined 3%, a second day of losses after reporting earnings that missed estimates.

The Sensex has climbed 20% this year, the best performer among the world’s 10 biggest markets, and trades at 15.1 times projected 12-month profits, versus the MSCI Emerging Markets Index’s multiple of 11.

Nine of the 16 Sensex members that have posted earnings for the June quarter have topped or matched forecasts. About 60% of companies exceeded or met earnings estimates in the March quarter, compared with 73% three months earlier.

“Some of the stocks had moved up sharply and earnings have yet to catch up," Alex Mathews, head of research with Geojit BNP Paribas Financial Services Ltd, said by phone from Kerala. “That is a bit of a concern for investors."

All 13 sector indexes compiled by the BSE posted losses, with the S&P BSE Consumer Durables Index falling 3.3%, the most since 8 July. The BSE Mid-Cap Index slid 0.8%, paring the gauge’s gain this year to 36%.

The rupee lost 1% to close at 61.19 per dollar, the biggest drop since 24 January.

The MSCI World Index declined 0.5%, taking losses this week to 2.4%. Standard and Poor’s 500 Index slumped 2% on Thursday, while the Dow Jones Industrial Average lost 1.9% to erase the year’s advance as Exxon Mobil Corp. to Micron Technology Inc. tumbled amid disappointing earnings.

Foreigners sold $45.9 million of Indian stocks on 30 July, the first net outflow in 10 days. That cut this year’s inflow to $12.1 billion, still the most among eight Asian markets tracked by Bloomberg. Bloomberg

Santanu Chakraborty in Mumbai also contributed to this story.

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Published: 01 Aug 2014, 09:51 AM IST
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