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Indian stocks fell for a sixth day, with the benchmark index dropping to its lowest level in more than two months, before derivative contracts expire on Thursday.
NTPC, the country's biggest power producer, was the worst performer on the S&P BSE Sensex, while Gail India, the top natural-gas supplier, slid for the first time this week. Larsen & Toubro, the largest engineering company, declined the most in two weeks. State Bank of India retreated for a fifth day.
The Sensex lost 0.2 per cent to 28,111.83, the lowest close since January 15. The gauge has retreated 4.3 per cent this month amid concern higher US interest rates may cause outflows from emerging markets, and as data compiled by Bloomberg showed that earnings per share for the index's 30 companies decreased for the first time in six quarters.
"A recovery in earnings has been delayed by two-to-three quarters, and that will lead to a prolonged period of consolidation for the market," Vibhav Kapoor, group chief investment officer at IL&FS Investmart Financial Services, said in an interview to Bloomberg TV India. "There could be some more downside."
NTPC tumbled 3.5 per cent to Rs 147.35, trimming this year's gain to 2.3 per cent. Gail India lost 2.5 per cent. Larsen & Toubro decreased 2.4 per cent. State Bank of India slid 1.9 per cent, taking its loss in the past five days to 7.6 per cent.
The CNX Nifty Index lost 0.1 per cent to 8,530.80 after changing direction at least 12 times. Nifty futures for March delivery fell 0.6 per cent to 8,526.5 in Singapore. The contract expires on Thursday.
The S&P BSE Sensex trades at 15.7 times projected 12-month profits, compared with its three-year average of 14.1. The MSCI Emerging Markets Index is valued at a multiple of 11.9.
