India’s benchmark stock index slid from a record, poised to halt a seven-day winning streak, amid concern the rally has exceeded the outlook for earnings.
Tata Motors Ltd. (TTMT), owner of Jaguar Land Rover, declined for a second day after reaching an all-time high on July 22. Cairn India Ltd. (CAIR), which runs the nation’s biggest oil field on land, tumbled the most in three months after posting the lowest net income in 11 quarters. Natural gas-distributor GAIL India Ltd. was the worst performer on the S&P BSE Sensex (SENSEX), which lost 0.1 percent to 26,120.95 at 9:57 a.m. in Mumbai.
The index rose for seven straight days through yesterday, the longest run since September 2012, on better-than-expected company earnings and higher foreign inflows. The gauge trades at 15.6 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.2. Five of seven Sensex companies that have announced results so far for the June quarter have beaten or matched forecasts.
“Some investors might be tempted to take money off the table as the market is at a new high,” Arun Kejriwal, a director at Kejriwal Research & Investment Pvt., said by phone from Mumbai.
Wipro Ltd., India’s third-biggest software exporter, may report today that first-quarter profit increased 31 percent to 21.3 billion rupees ($ 354 million), according to the median estimate of 42 analysts in a Bloomberg survey.
Cement maker ACC Ltd. (ACC) may report net income rose to 2.66 billion rupees, up from 2.59 billion rupees, according to the median of 23 estimates compiled by Bloomberg. Ambuja Cements Ltd. (ACEM) may say earnings increased 18 percent to 3.82 billion rupees, according to a survey of 29 analysts.
The Sensex has increased 23 percent this year, the best performer among the world’s 10 biggest markets, as foreigners poured $ 11.9 billion into Indian equities, the most in Asia, on speculation that Prime Minister Narendra Modi’s government will spur economic growth from near a decade low.
They bought a net $ 61.8 million of local shares on July 22, a fifth straight day of net purchases, according to data compiled by Bloomberg.
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