Indian Shares Reverse Gains Amid Uncertainty About Poll Outcome

(Bloomberg) -- Indian equities reversed gains as investors continued to assess possible outcomes of elections in five states, seen as an indicator of voter mood toward the Narendra Modi-led Bharatiya Janata Party’s national government. The key stock indexes are headed for their first weekly decline in four.

The benchmark S&P BSE Sensex fell 0.2 percent to 35,127.42 as of 2 p.m. in Mumbai, while the NSE Nifty 50 Index retreated 0.3 percent. The gauges wiped out gains of at least 0.4 percent earlier. Markets are closed for a holiday Friday.

The Numbers

• Fourteen of the 19 sector indexes compiled by BSE Ltd. dropped, led by the S&P BSE Metal Index’s 1.5 percent slide. A gauge of software exporters rose the most.
• Automaker Mahindra & Mahindra Ltd.’s 3.1 percent fall was the steepest among the Nifty members, extending its slide from a record high close on Aug. 29 to 24 percent.
• Votes for the phased polling that has begun in five states will be counted on Dec. 11.

Strategist View

• “Markets will remain volatile in the next six to nine months -- either up or down -- and investors will have to play the volatility to their advantage,” said Avinash Gorakshakar, head of research at Joindre Capital Services Ltd. in Mumbai.
• “Oil price is a crucial factor for Indian equities and politics is a wild card and they will decide the direction of stocks near term,” he said.
• Read more of Gorakshakar’s views (terminal only)

Sell-side Notes

• Tech Mahindra Attractive at Current Valuations: JM Financial
• NMDC Downgraded to Neutral at Macquarie; PT 110 Rupees

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