Indian Shares End Lower, Rupee Falls

MUMBAI—Indian shares closed lower for the fifth straight session Monday, while the rupee currency fell further amid renewed concerns that the U.S. central bank could roll back its stimulus measures sooner than expected after surprisingly strong jobs data.

Recent market outperformers such as engineering company Larsen & Toubro and Tata Motors led the decline.

On the Bombay Stock Exchange, the S&P BSE Sensex index fell 0.9% to 20490.96 points, its lowest close since Oct. 17. The 30-stock index had declined 2.7% in the previous four trading sessions.

On the National Stock Exchange, the 50-share Nifty index closed 1.0% lower at 6078.80 points.

Indian Shares End Lower, Rupee FallsThe rupee declined against the U.S. dollar, in line with weakness in most regional currencies, on expectations that the strong U.S. labor report may prod the Federal Reserve to roll back its $85-billion-a-month bond buying.The rupee ended local spot trading at 63.24 to the dollar, compared with 62.48 Friday.

“The markets saw further correction. Rupee’s weakness is hurting market sentiment,” said Milan Bavishi, head of research at Inventure Growth and Securities. He expects the Nifty to find strong support at 6000.

Analysts expect quarterly earnings from large companies such as State Bank of India, Tata Steel and aluminum maker Hindalco Industries, all due this week, to hold key for markets. Macroeconomic data such as September industrial output data, due Tuesday, and October inflation numbers could also be keenly watched, they added.

Ten of the Bombay Stock Exchange’s 13 sector indexes ended lower.

Larsen & Toubro dropped 3.1% to 943.60 rupees, while Tata Motors fell 2.0% to 377.15 rupees.

Larsen & Toubro had gained about 12% since Oct. 21 to Friday. The company in October announced better-than-expected July-September earnings. Tata Motors had hit a record high of 400.70 rupees last week.

Hindalco, down 4.3% at 111.45 rupees, was the top loser among Sensex stocks. The stock fell ahead of the announcement of the company’s second-quarter results Tuesday.

– WALL STREET JOURNAL

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