Most Indian stocks rose as software exporters climbed after the rupee weakened to a seven-month low amid concern the U.S. Federal Reserve may raise interest rates.
Tata Consultancy Services Ltd. (TCS), Infosys Ltd. (INFO) and Wipro Ltd., India’s largest technology companies, were the biggest gainers on the benchmark S&P BSE Sensex. (SENSEX) Jet Airways (India) Ltd. and SpiceJet Ltd. climbed after refiners cut aviation-fuel prices. The currency dropped 0.1 percent to 61.82 per dollar.
Six stocks climbed for every five that fell on the S&P BSE 100 Index. The Sensex dropped 0.1 percent to 26,593.96 at 11:17 a.m., after changing direction at least 12 times before markets close for a five-day holiday starting tomorrow. Volume on the CNX Nifty Index was 8 percent below the 30-day average for this time of day, data compiled by Bloomberg show.
“This rare bunching of holidays that we haven’t seen in at least nine years is deterring investors from taking fresh positions,” V.K. Vijayakumar, an investment strategist with Geojit BNP Paribas Financial Services Ltd., in the southern state of Kerala, said by phone.
The Sensex lost less than 0.1 percent last month, ending seven months of advance that was the longest winning run since January 2007. The gauge has risen 26 percent this year, the top performer among the world’s 10 biggest markets, as foreigners purchased $ 13.8 billion of local shares, the most among eight Asian markets tracked by Bloomberg.
Tata Consultancy gained 1.6 percent, taking this year’s advance to 28 percent. Wipro (WPRO), the third-biggest software exporter, rallied 2.8 percent. Infosys Ltd. added 1.2 percent.
Fuel Prices
Jet Airways jumped 2.1 percent, while SpiceJet rose 2.8 percent. The government last evening cut aviation turbine fuel by 3 percent.
Maruti Suzuki India Ltd. (MSIL) retreated the most in five weeks after the nation’s largest carmaker recalled some vehicles. The stock declined 2.3 percent, paring this year’s advance to 70 percent, still the best performance on the Sensex.
The Reserve Bank of India kept its repurchase rate at 8 percent in a policy review yesterday, joining counterparts from Russia and Brazil in holding rates this month as it seeks to cool price pressures. Governor Raghuram Rajan warned that near-zero interest rates in developed markets may be distorting asset prices without creating any real gain in economic activity.
Foreigners bought a net $ 37.7 million of Indian stocks on Sept. 29, the first inflow in five days, data compiled by the market regulator show.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar, Chan Tien Hin