(Bloomberg) -- India stocks fell, with the S&P BSE Sensex retreating for a second day after failing to breach the 50,000 mark earlier this week.
The S&P BSE Sensex declined 0.4% to 49,311.25 as of 10:10 a.m. in Mumbai. The measure is down for a second day after setting record highs in 11 of the previous 14 trading sessions. The NSE Nifty 50 Index also lost 0.4% today.
“The speed of the rise has been too fast and with minimal corrections on the way,” said Deepak Jasani, head of retail research at HDFC Securities Ltd. in Mumbai, “Also, hopes of the economy and corporate earnings turning around have supported the rise, but India and its corporates have been known to disappoint on both counts.”
Overly optimistic earnings estimates and a reduction in liquidity pose the biggest threats to the scorching pace of gains, strategists from Nomura Holdings Inc. to Kotak Mahindra Asset Management Co. warned. The S&P BSE Sensex Index has risen for 10 straight weeks -- its longest winning streak since 2009.
Read: Record Valuations Raise Alarm in Frenzied India Stock Market
Wipro Ltd. and Infosys Ltd were the biggest drags on the broader Nifty index, with each falling by at least 5%, after posting quarterly earnings after markets closed yesterday.
The yield on the benchmark 10-year government bond decreased by one basis point, while the rupee was little changed at 73.1650 against the U.S. dollar.
- Eleven of 19 sector sub-indexes compiled by BSE Ltd. declined, with a gauge of IT companies falling the most
- Seventeen shares on the Sensex index fell while 13 rose
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- Record Valuations Raise Alarm in India’s Frenzied Stock Market
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