Indian stocks fall for first time in four days, DLF declines
Wednesday, 3 June 2009
MUMBAI, June 2 (Bloomberg): India's benchmark stock index fell for the first time in four days, led by Reliance Industries Ltd. and DLF Ltd., after investors judged last month's gains as excessive.
Reliance Industries, the largest company by market value, slid 1.3 per cent after authorities questioned some of its gas- field reserves claims. DLF, the biggest real estate developer, dropped 1.6 per cent. Ranbaxy Laboratories Ltd. lost 6.8 per cent.
"The markets have run up a little ahead of themselves," said Satish Ramanathan, who helps manage the equivalent of $1.6 billion in equities at Sundaram BNP Paribas Asset Management Co. Ltd. in Chennai. "There has to be some stabilisation at these levels before the next leg of the pickup happens."
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 71.18, or 0.4 per cent, to 14,769.45 at 2:19 p.m. in Mumbai today. The S&P CNX Nifty Index on the National Stock Exchange lost 0.8 per cent to 4,495.40. The BSE 200 Index declined 0.6 per cent to 1,796.70.
DLF lost 1.6 per cent to 408.50 rupees. Ranbaxy, India's biggest drugmaker, retreated 6.8 per cent to 256.10 rupees. Reliance Infrastructure Ltd., the second-largest utility, fell 5.7 per cent to 1,228 rupees. Jaiprakash Associates Ltd., the No. 1 builder of dams, slid 5 per cent to 209 rupees.
The Sensex surged 28 per cent in May, its steepest monthly rise since March 1992, when the index climbed 51 per cent. Gains were boosted by a 17 per cent rally on May 18, the first day of trading after the ruling Congress party's biggest election victory in two decades.
The Sensex's relative strength index, which measures how rapidly prices rose or fell during the specified period, has exceeded 70 for the past three days. Some investors regard readings at 70 and above as a signal to sell.
Reliance Industries fell after the Economic Times reported that the directorate general of hydrocarbons contested the authenticity of gas-reserves claims in two areas in the Krishna Godavari basin by Hardy Oil & Gas Plc, citing V.K. Sibal, the director general. Reliance's spokesman Tushar Pania declined to comment.
"It was a false, wrong claim," Sibal said by telephone from New Delhi today. "They haven't followed regulatory guidelines in announcing the reserves and this can be very misleading for everyone."
Reliance Industries shares fell 1.3 per cent to 2,252.55 rupees after sliding as much as 2.6 per cent. The stock has advanced 81 per cent this year compared with a 52 per cent gain for India's 30-share benchmark index.
Indiabulls Real Estate Ltd., India's third-biggest developer, lost 7.5 per cent to 229.20 rupees after it was downgraded to "hold" from "buy" at Deutsche Bank AG.
Reliance Industries, the largest company by market value, slid 1.3 per cent after authorities questioned some of its gas- field reserves claims. DLF, the biggest real estate developer, dropped 1.6 per cent. Ranbaxy Laboratories Ltd. lost 6.8 per cent.
"The markets have run up a little ahead of themselves," said Satish Ramanathan, who helps manage the equivalent of $1.6 billion in equities at Sundaram BNP Paribas Asset Management Co. Ltd. in Chennai. "There has to be some stabilisation at these levels before the next leg of the pickup happens."
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 71.18, or 0.4 per cent, to 14,769.45 at 2:19 p.m. in Mumbai today. The S&P CNX Nifty Index on the National Stock Exchange lost 0.8 per cent to 4,495.40. The BSE 200 Index declined 0.6 per cent to 1,796.70.
DLF lost 1.6 per cent to 408.50 rupees. Ranbaxy, India's biggest drugmaker, retreated 6.8 per cent to 256.10 rupees. Reliance Infrastructure Ltd., the second-largest utility, fell 5.7 per cent to 1,228 rupees. Jaiprakash Associates Ltd., the No. 1 builder of dams, slid 5 per cent to 209 rupees.
The Sensex surged 28 per cent in May, its steepest monthly rise since March 1992, when the index climbed 51 per cent. Gains were boosted by a 17 per cent rally on May 18, the first day of trading after the ruling Congress party's biggest election victory in two decades.
The Sensex's relative strength index, which measures how rapidly prices rose or fell during the specified period, has exceeded 70 for the past three days. Some investors regard readings at 70 and above as a signal to sell.
Reliance Industries fell after the Economic Times reported that the directorate general of hydrocarbons contested the authenticity of gas-reserves claims in two areas in the Krishna Godavari basin by Hardy Oil & Gas Plc, citing V.K. Sibal, the director general. Reliance's spokesman Tushar Pania declined to comment.
"It was a false, wrong claim," Sibal said by telephone from New Delhi today. "They haven't followed regulatory guidelines in announcing the reserves and this can be very misleading for everyone."
Reliance Industries shares fell 1.3 per cent to 2,252.55 rupees after sliding as much as 2.6 per cent. The stock has advanced 81 per cent this year compared with a 52 per cent gain for India's 30-share benchmark index.
Indiabulls Real Estate Ltd., India's third-biggest developer, lost 7.5 per cent to 229.20 rupees after it was downgraded to "hold" from "buy" at Deutsche Bank AG.