(Bloomberg) -- Most Indian equities fell, with the benchmark gauge set for a fourth-straight weekly gain, after technical indicators came close to flashing a warning sign.

The S&P BSE Sensex declined less than 0.1% to 36,702.47 as of 10:16 a.m. in Mumbai, still on course to complete its longest stretch of weekly gains since November, while the NSE Nifty 50 Index also lost less than 0.1%. Both gauges’ relative strength and 200-day moving averages are close to levels triggering sell signals.

“Valuations can’t be justified by any metric now,” said Amit Khurana, head of research at Dolat Capital Ltd. in Mumbai.

As India’s corporate earnings season commences, the country faces its first economic contraction in 40 years even as signs of recovery emerge with business gradually reopening. Still, the South Asian nation is the third-worst hit by the coronavirus, after the U.S. and Brazil.

Read: What Google Data Tells Us About India’s Economic Recovery

Tata Consultancy Services Ltd. yesterday posted profit below expectations after the pandemic disrupted its ability to service key clients. The shares fell 0.6%. Asia’s largest software outsourcing provider is the first of India’s giant IT services companies to report earnings for the three months through June. Wipro Ltd. and Infosys Ltd. are scheduled to post results Tuesday and Wednesday, respectively.

The yield on the benchmark 10-year government bond slipped one basis point to 5.76%, while the rupee depreciated 0.2% to 75.1625 per U.S. dollar.

The Numbers

  • Eight of 19 sector sub-indexes compiled by BSE Ltd. slipped, led by a gauge of healthcare companies
  • Thirteen Sensex shares fell while 13 rose
    • HDFC Bank Ltd. contributed the most to the index decline, slipping 0.9%, Tech Mahinra Ltd. had the largest fall, dropping 2%; Reliance Industries Ltd. provided the biggest boost with a 1% gain, Sun Pharmaceuticals Ltd. was the biggest winner, adding 2.6%.

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