India Stocks Falls; Software Exporters Slide as Dollar Weakens

By Rajhkumar K Shaaw

Oct. 15 (Bloomberg) -- India’s benchmark stock index fell for the first time in three days, led by software service providers and pharmaceutical companies on concern a weakening dollar will hurt earnings of the country’s biggest exporters.

Tata Consultancy Services Ltd., the largest software- services provider, fell the most in a week. Infosys Technologies Ltd., the second-biggest, declined 1.3 percent. Sun Pharmaceutical Industries Ltd., the most valuable drugmaker, dropped 3.2 percent. The rupee today touched a one-year high against the U.S. dollar.

“The dollar weakening is surely hurting,” said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals. “This might impact the next quarter numbers of export-driven companies.”

The Bombay Stock Exchange’s Sensitive Index, or Sensex, fell 35.91, or 0.2 percent, to 17,195.20 in Mumbai. The S&P CNX Nifty Index on the National Stock Exchange declined 0.2 percent to 5,108.85. The BSE 200 Index added 0.1 percent to 2,132.14.

Tata Consultancy lost 1.9 percent to 581.8 rupees. Infosys declined 1.3 percent to 2,217.4 rupees. Wipro Ltd., the third- biggest software-services provider, slid 1.2 percent to 574.95 rupees. Software companies get 40 percent of their earnings in U.S. dollars.

Sun Pharmaceutical slid 3.2 percent to 1,359.75 rupees, to its lowest since Sept. 25.

Drugmakers

The rupee’s gains against the dollar may make India’s products more expensive overseas. Cipla Ltd., the second-largest Indian pharmaceutical company by market value, slid 2.9 percent to 294.15 rupees. Ranbaxy Laboratories Ltd., the third-largest, fell 1.7 percent to 392.75 rupees, while Dr. Reddy’s Laboratories Ltd. lost 1.7 percent to 966.60 rupees.

The dollar fell to a 14-month low against the euro as improving corporate earnings helped Asian stocks extended a global equity rally, encouraging investors to seek higher- yielding assets. The rupee traded at as much as 45.805 against the dollar, the highest level since Sept. 24, 2008.

Sterlite Industries (India) Ltd., the No. 1 copper producer, added 1.5 percent to 868.80 rupees after copper for delivery in three months on the London Metal Exchange gained as much as 1.7 percent to $6,325 a ton, extending yesterday’s 1.3 percent advance. January-delivery copper on the Shanghai Futures Exchange rose as much as 1.2 percent to 49,680 yuan a ton.

United Spirits Ltd., India’s biggest liquor maker, advanced 7.1 percent to 987.05 rupees, as it raised $350 million by selling shares to institutional investors.