Sensex Falls After Flirting With Record; Jet Airways Plunges

(Bloomberg) -- Indian equities erased earlier gains as the benchmark gauges flirted with record highs. Jet Airways India Ltd. slumped by a record after the airline suspended operations amid a funding crunch.

The benchmark S&P BSE Sensex fell 0.3 percent to 39,169.86 as of 10:32 a.m. in Mumbai, reversing earlier gains. The NSE Nifty 50 Index dropped 0.4 percent to 11,746.00. Both had hit records on Tuesday. The market was shut yesterday and will be closed tomorrow for public holidays.

Local equities have gained from a gush of foreign money this year amid a rising appetite for riskier assets as central banks globally revert to a dovish monetary stance. Overseas investors have bet on lower interest rates and inflation, growth in company profits and the increasing chance that the incumbent national government will retain power. India today holds second of its seven rounds of voting that will span until May 19, with counting on May 23.

Strategist View

• “The current market rally is a result of robust foreign flows, more so on the back of a better risk environment, led by softer rates and a better liquidity outlook,” said Vaibhav Sanghavi, co-chief executive officer at Mumbai-based Avendus Capital PBC Markets Alternate Strategies LLP.
• The election is a binary event; however, investors looking at the opinion polls are taking some comfort from them, he said.
• Better corporate profits would be a key tailwind medium-term, he said.

The Numbers

Analyst Notes/Market-Related Stories

• Nifty Index’s Positive Bias Likely to Continue: Kotak Securities
• A $6 Trillion Reason to Buy Into Asian Equities: Taking Stock

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