India’s Sensex Declines a Third Day as Mahindra Shares Pace Fall

  • 20th Feb, 2018

 Indian shares declined, with the benchmark gauges extending their retreat to a third straight day. The equity indexes erased the gains they held through the day in the last half an hour.

The benchmark S&P BSE Sensex dropped 0.2 percent at the close in Mumbai, taking its February slide to 6.3 percent, putting it on course for the worst monthly performance in two years. Mahindra & Mahindra Ltd.’s 2.2 percent fall was the steepest among Sensex members after the car-and-tractor maker said Monday it will invest an additional 5 billion rupees ($77 million) on electric vehicles.

Sentiment toward Indian stocks soured this month as investors assess the impact of a long-term capital gains tax on equities along with a decision by Indian exchanges to end  licensing accords with counterparts abroad, and an almost $2 billion bank fraud engulfing state-owned lenders.

“Higher valuations are a challenge and rising volatility can be worrisome if there’s a downward bias in the market,” said Sampath Reddy, chief investment officer at Pune-based Bajaj Allianz Life Insurance Co. “Factors such as the impact of tax on equities, the dispute with SGX and MSCI, bad-loan problems of banks are weighing on investor minds and leading toward negative sentiment,” he said.

The NSE Nifty 50 Index dropped 0.2 percent — closing a second straight session below its 100-day moving average — a trend line that has supported its rally for more than a year. The last time it fell below the mean was in November 2016, when it went on to decline more than 7 percent.

Source : Bloomberg Quint

Leave A Comment

Your email address will not be published. Required fields are marked *

Enter the text from the image below

Recent Weekly Market Update

  • Weekly Market Update – 11 January, 2019

    View PDF

  • Weekly Market Update – 04 January, 2019

    View PDF

  • Weekly Market Update – 28 December, 2018

    View PDF

Trending Plan


Investment Plan

Goal Assure

know more

Subcribe to Our Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.