The rupee weakened 0.2%, the most since October 20, to 64.9650 a dollar yesterday.

Bloomberg
Mumbai


Indian stocks dropped from a two-month high after quarterly earnings of Bharti Airtel and Housing Development Finance Corp disappointed investors.
Bharti Airtel, the nation’s biggest cell-phone company, tumbled to a one-week low as its second-quarter profit that beat estimates included a one-time gain. HDFC, the largest mortgage lender, declined the most in a month after its net income missed estimates. Asian Paints Ltd was the worst performer on the CNX Nifty Index after its sales and profit trailed forecasts.
The S&P BSE Sensex slid 0.4% to 27,361.96 at the close in Mumbai, after rising as much as 0.5% in early trade in response to China’s cut in interest rates. The gauge capped a fourth weekly advance on Friday as the European Central Bank signalled it may boost stimulus. So far, seven of the 10 Sensex companies that have reported September-quarter results have matched or beaten estimates.
“While the earnings season hasn’t been bad so far, some of the big names disappointed today causing the market to fluctuate despite a rally in global equities,” D K Aggarwal, chairman of SMC Investments in New Delhi, said by phone. “Investors will take cues from the remainder of the reporting season and the results of the Bihar state election.”
The ongoing elections in Bihar are important for Prime Minister Narendra Modi’s efforts to control the upper house of parliament, where opposition lawmakers have blocked major economic proposals including a nationwide sales tax. A win would give him momentum in about a dozen more state elections through 2017 that will determine control of the body. Poll results are due on November 8.
Investors bought a net $41.5mn of Indian stocks on October 23, taking this year’s inflows to $4.5bn. The Sensex has dropped 0.5% this year, compared with a 9% decline in the MSCI Emerging Markets Index. The Indian measure is valued at 15.8 times projected 12-month earnings, compared with a multiple of 11.5 for the developing nations index, data compiled by Bloomberg show.
Bharti declined 1.8%, paring this month’s advance to 4.4%. Net income increased 10.1% to Rs15.2bn ($234mn) in the three months ended September from a year earlier, compared with analysts’ estimates for Rs11.9bn. The earnings included a Rs6.6bn exceptional gain from the disposal of the towers and a net tax benefit.
Second-quarter net income at HDFC rose 18% to Rs16.1bn from Rs13.6bn a year earlier. That fell short of the Rs16.4bn estimated by analysts. The shares tumbled 1.9%, paring this year’s gain to 16%.
Asian Paints plunged 4.8%, the most since August 24. The company’s group profit of Rs3.99bn missed the Rs4.4bn estimated by analysts. It reported sales of Rs37.3bn, less than the estimated Rs39.2bn.
Coal India, the world’s biggest producer of the fuel, was the worst performer on the Sensex. Reliance Industries, owner of the world’s largest refining complex, slid 1.3% after rising 4.8% last week.
Meanwhile the rupee fell the most in almost a week on speculation importers are boosting dollar purchases to pay month-end bills.
The currency weakened 0.2%, the most since October 20, to 64.9650 a dollar in Mumbai, prices from local banks compiled by Bloomberg show. A gauge of dollar strength completed its longest winning streak since January 26 on Friday.
“Demand for greenback from importers and recent gains in the dollar are weighing on the rupee,” said Gaurav Sharma, a senior currency analyst at Religare Commodities in Noida, near New Delhi.