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Business News/ Market / Stock-market-news/  Sensex declines the most in seven weeks
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Sensex declines the most in seven weeks

The Sensex closed 1.58%, or 431.05 points, lower at 26,775.69 points, while the Nifty shed 1.58%, or 128.75 points, to end at 8,017.55 points

Over 2,100 stocks listed on the BSE fell on Tuesday, wiping out more than `1.63 lakh crore in investor wealth. Photo: MintPremium
Over 2,100 stocks listed on the BSE fell on Tuesday, wiping out more than `1.63 lakh crore in investor wealth. Photo: Mint

Mumbai: Indian stocks tumbled the most in seven weeks ahead of the monthly expiration of derivatives and amid concern the recent rally may have outpaced the outlook for earnings.

Tata Motors Ltd, the owner of JaguarLand Rover, declined from a record. Drug maker Cipla Ltd retreated the most in seven months. Aluminium producer Hindalco Industries Ltd fell the most since June. Oil and Natural Gas Corp. Ltd (ONGC), India’s largest state-owned oil explorer, dropped 2.8%.

The benchmark S&P BSE Sensex slid 1.6% to 26,775.69 points at the close in Mumbai ahead of the expiration of derivatives contracts on 25 September. The gauge today fell the most since 1 August and was the worst performer in Asia.

The broader Nifty index of the National Stock Exchange declined 1.58% to 8,017.55.

The Sensex has increased 26% this year, the best performer among the world’s 10 biggest markets, as foreigners pumped the most amount of inflows into the country among eight Asian markets tracked by Bloomberg. The gauge is valued at 15.4 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.

“Given that we have seen a fairly good rally of the market over the last few months such punctuations will come out about more frequently," Taher Badshah, co-head of equities at Mumbai-based Motilal Oswal Asset Management, which manages about $225 million in assets, said in an interview with Bloomberg TV India on Tuesday. “It’s one of those days when stocks decline, and today’s was led by data weakness in European markets."

Tata Motors fell 4.1%, paring this year’s advance to 38%. Cipla tumbled 4.7%, the worst performer on the Sensex. Sun Pharmaceutical Industries Ltd, India’s most valuable drug maker, fell 2.2%, while Ranbaxy Laboratories Ltd retreated 3.5%, a third day of decline.

Hindalco lost 3.1%, while Tata Steel Ltd, the biggest Indian producer of the alloy, also decreased 3.1%. ONGC fell 2.8%.

The India VIX index, a measure of protection against stock- market losses using options, rose 7.3%, rebounding from a record low of 11.6 reached on Monday.

Traders rolled over 47% of their Nifty contracts compared with the six-month average of 39%, data compiled by Bloomberg showed.

International investors bought a net $18.5 million of Indian stocks on 19 September, taking this year’s inflows to $14.2 billion, the highest amount in Asia. Bloomberg

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Published: 23 Sep 2014, 10:09 AM IST
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