(Bloomberg) -- Indian equities reversed initial gains, with the benchmark index headed for its first decline in nine days.

The S&P BSE Sensex fell 0.2 percent to 38,299.36 as of 11:03 a.m. in Mumbai, reversing an advance of as much as 0.3 percent. The NSE Nifty 50 Index retreated 0.2 percent.

Looser-than-anticipated global monetary policies have resulted in a gush of money to riskier emerging market assets such as India, where foreign funds have been net buyers of stocks for ten straight days to March 19. The Sensex and Nifty have rebounded more than 8 percent from this year’s low on Feb. 19.

Even as foreigners have pumped in nearly $6 billion in Indian stocks in 2019 -- the highest among major Asian markets -- on bets that Prime Minister Narendra Modi will get another five-year term in May, investors expect corporate earnings and the Reserve Bank of India’s stance on borrowing costs to direct market direction.

Strategist View

• “The rally is not only about anticipation of election results; more importantly is the benign interest rates environment and favorable liquidity conditions at the margin, which is aiding the overall flow and sentiment,” said Vaibhav Sanghavi, co-chief executive officer at Mumbai-based Avendus Capital PBC Markets Alternate Strategies LLP.
• “Of course election results are going to play a significant role in the shorter term, but after that it’s interest rates, liquidity and earnings which will be of paramount importance,” he said.

The Numbers

• Twelve of the 19 sector indexes compiled by BSE Ltd. dropped, led by a gauge of energy stocks.
• Nineteen of the 31 Sensex members and 29 of the 50 Nifty stocks fell. Both the Sensex and Nifty have been trading above their 14-day RSI of 70, a signal to some traders that a security is overbought, for eight days.
• State-owned refiner Hindustan Petroleum Corp.’s 2.3 percent decline was the steepest among Nifty members, paring this year’s gain to 9.3 percent.
• SpiceJet Ltd. jumped 8 percent to its highest in more than seven months as the aviation company may consider taking over some aircraft from debt-laden rival Jet Airways India Ltd. Jet added 2.7 percent.
• Kansai Nerolac Paints Ltd. retreated 3 percent after CLSA downgraded recommendation on the company’s shares.
• Krypton Industries Ltd. surged 10 percent, highest in six months, after winning a 231 million rupee order.

Analyst Notes/Market-Related Stories

• Kansai Nerolac Downgraded to Sell at CLSA; PT 385 Rupees
• Aster DM Healthcare Rated New Buy at HSBC; PT 205 Rupees
• Finolex Cables Cut to Hold at Jefferies; Price Target 525 Rupees

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