Mumbai: India's stocks fell, led by Infosys Technologies after its earnings report and as the central bank indicated it may intervene to limit currency gains, prompting concern it may slow record foreign fund inflows.
Infosys retreated from its highest level, halting a three-day, 3.6 per cent advance.
Chief Financial Officer V. Balakrishnan yesterday said rupee volatility will "kill the whole export industry." Smaller peer Wipro Ltd. slid the most since January.
"Exporters need a stable currency environment," said Sudhakar Shanbhag, who manages $1.7 billion in assets as chief investment officer at Kotak Mahindra Old Mutual Life Insurance Ltd. in Mumbai.
"The job of the central bank is very challenging" as it needs to balance inflows, monetary tightening and growth.
The Bombay Stock Exchange's Sensitive Index, or Sensex, lost 372.59, or 1.8 per cent, to 20,125.05 as of the 3.30pm close in Mumbai, declining for the second week. The gauge last week retreated after nearing its highest close of 20,873.33 on January 8, 2008. The S&P CNX Nifty Index on the National Stock Exchange fell 1.9 per cent to 6,062.65. The BSE 200 Index dropped 1.7 per cent to 2,558.95.
This year's 15 per cent rally makes the Sensex the best performer among the world's 10 biggest stock markets. Foreign fund inflows have surged 66 per cent this year, making the gauge the most expensive in Asia and among the BRIC markets that also include Brazil, Russia and China.
