Indian Stock Market Sees Decline Amid Global Weaknesses

Strategic Insights -

The Indian stock market saw a decline in its benchmark index, the Sensex, after a six-day rally ended, with technology companies and metalmakers experiencing the biggest losses. Tata Consultancy Services Ltd., India's top software maker, dropped the most in three weeks, while Bharti Airtel Ltd., the largest mobile-services company, declined for the first time in four days. The Sensex lost 0.2 percent to 27,842.32, as global cues weakened and investors waited for quarterly earnings reports.

Key Takeaways:

  • The Sensex, India's benchmark stock index, declined by 0.2 percent to 27,842.32, ending a six-day rally.
  • Tata Consultancy Services Ltd., India's top software maker, dropped 1.5 percent to 2,540.25 rupees, the most since December 15.
  • Bharti Airtel Ltd., the largest mobile-services company, declined 2.2 percent, the most since December 17.
  • Indian technology companies get more than half of their revenue from overseas, making them vulnerable to global economic trends.
  • 67 percent of the 30 Sensex firms beat or matched analyst estimates in the September quarter, versus 46 percent in the three months ended June and 60 percent in March.
  • Profits at 67 percent of the 30 Sensex firms beat or matched analyst estimates, according to data compiled by Bloomberg.
  • The MSCI Emerging Markets Index slid for a third day as speculation that Greece may exit the European currency union cooled demand for riskier assets.

Statistics:

  • Sensex lost 0.2 percent to 27,842.32
  • Tata Consultancy Services Ltd. dropped 1.5 percent to 2,540.25 rupees
  • Bharti Airtel Ltd. declined by 2.2 percent
  • 67% of the 30 Sensex firms beat or matched analyst estimates in the September quarter
  • Sensex climbed 30% in 2014, the biggest annual gain in five years
  • Foreigners bought a net $4.4 million of local shares on January 1, adding to $16 billion of stock purchases last year
  • IRB Infrastructure Developers Ltd. declined 8 percent after a report said India's Federal Agency raided the firm's offices

Sources:

  • Bloomberg TV India citing unnamed sources
  • Bloomberg citing data compiled by Bloomberg
  • "Indian Stock Market Sees Decline Amid Global Weaknesses" - Press Release from the Global Association of Risk Professionals