Bystanders watch share prices displayed on a digital broadcast on the facade of the Bombay Stock Exchange building in Mumbai. The Sensex closed down 0.6% to 25,590.65 points yesterday.

Bloomberg
Mumbai

Indian stocks declined for a second time in seven days in volatile trade, led by technology and consumer companies.
Tata Consultancy Services and Infosys, the biggest software exporters, slid at least 1.5%. ITC, the largest cigarette company, is set for its first annual drop in seven years. Mahindra & Mahindra, a tractor maker, fell the most in a week. Adani Ports & Special Economic Zone, which became part of the S&P BSE Sensex on Monday, declined for the first time in four days.
The Sensex declined 0.6% to 25,590.65 at the close, after changing direction at least eight times. Trading may remain subdued as the gridlock in parliament stalls the passage of crucial bills including a goods and services tax in a holiday-shortened week, according to Taurus Asset Management Co.
“There are no triggers, with the parliament session ending tomorrow without any movement on the major bills,” said R K Gupta, managing director of Taurus Asset in New Delhi. “It’s also a short week before Christmas holiday on Friday, and traders are not willing to take undue risks.”
India’s economy will expand 7% to 7.5% this fiscal year, Finance Minister Arun Jaitley told lawmakers this month. While still among the fastest in the world, the pace is lower than the previous forecast of 8% as a gridlock in parliament stalls crucial bills and China’s slowdown jeopardises global growth.
Tata Consultancy Services declined 1.7%, the most since November 13. Infosys lost 1.8%, paring this year’s advance to 10%. ITC retreated 1.9%, extending this year’s loss to 13%. Mahindra & Mahindra slipped 1.7%. Adani Ports lost 1.2%, the most since December 11.
Reliance Communications, the telecom operator owned by billionaire Anil Ambani, gained 2.2% to its highest level in a year after saying it is in talks to merge with smaller wireless carrier Aircel.
Reliance is considering the “potential combination” of its wireless operations with those of Aircel, it said in a filing. Though the statement didn’t provide financial details, the company has 90 days to have exclusive talks with Aircel owners – Malaysia’s Maxis Communications Bhd and Sindya Securities & Investments.
Reliance Communications has risen 26% in the current quarter and has been the top performer in the 13-member S&P BSE Telecom Index in the past month.
International investors bought a net $43mn of Indian stocks on December 21, taking this year’s purchase to $2.8bn. The Sensex trades at 15.4 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 11.1.
Meanwhile the rupee closed little changed from Monday at 66.33 a dollar, according to prices from local banks compiled by Bloomberg.
India’s 10-year sovereign bonds halted a two-day drop on speculation the recent increase in yields attracted buyers.
The yield on the securities due May 2025 fell one basis point to 7.76% in Mumbai, after rising six basis points over the previous two days, prices from the central bank’s trading system show. Its close of 7.77% on Monday was the highest since December 15, as bonds declined on concern slowing economic growth will put the government’s budget-deficit target at risk and prompt it to increase debt sales.
“Value buying perhaps seem to be the reason for the gain in bonds,” said Harish Agarwal, a Mumbai-based fixed-income trader at FirstRand Ltd Markets will be keenly watching for any clues from the government about how it meets the deficit goal for next year, he said.
The government may have to reassess its fiscal projections for the year starting April 1, the Finance Ministry said in a review published on Friday, as the passage of crucial bills including a goods and services tax stalls in parliament. India lowered its estimate for the economy’s expansion in the 12 months through March this month amid a slowdown in China. Global funds are already pulling funds from the South Asian nation’s bonds.