April 22 (Bloomberg) -- Indian stocks fell for a third day as some investors judged recent gains excessive and on concern a fractured national election outcome may hinder stable government.
Bharti Airtel Ltd., the nation's biggest mobile phone services provider, fell 1 percent. The shares remain 30 percent higher since they reached this year's low on March 12. Maruti Suzuki India Ltd. dropped 4.4 percent, leaving India's largest carmaker 46 percent up from its 2009 low on Jan. 23.
"We are seeing profit-booking after the sharp rally," said Jitendra Sriram, who oversees about $537 million in stocks at HSBC Asset Management (India) Pvt. in Mumbai. "As elections approach, markets will become more volatile as no clear mandate seems to be emerging for any party."
Indians are voting in a general election ending May 13 with opinion polls showing neither the governing Congress party-led United Progressive Alliance nor the opposition led by the Bharatiya Janata Party winning a clear majority. The second voting phase takes place tomorrow.
The Bombay Stock Exchange's Sensitive Index fell 0.7 percent to 10,817.54. It earlier rose as much as 1.3 percent. The index has gained 33 percent since this year's low on March 9. The S&P CNX Nifty Index on the National Stock Exchange dropped 1 percent to 3,330.30. The BSE 200 Index slid 0.9 percent to 1,287.47. Nifty futures for April delivery declined 0.8 percent to 3,338.
Bharti slid 1 percent to 712.60 rupees. The stock's 14-day relative strength index, which measures how rapidly prices rose or fell during the period, climbed above 70 yesterday. Some investors regard readings at 70 and above as a signal to sell. Maruti fell 4.4 percent to 754.15 rupees, extending yesterday's 5.7 percent decline. Its relative strength index was above 70 on April 20.
The following shares were among the most active on the exchange:
Derivatives Section: The National Exchange will exclude NIIT Ltd. (NIIT IN) and 49 other companies from its derivatives section starting on May 4.
NIIT fell 8.2 percent to 25.7 rupees. 3i Infotech Ltd. (III IN) dropped 10 percent to 40.95 rupees. IRB Infrastructure Developers Ltd. (IRB IN) declined 6.8 percent to 96.70 rupees. UTV Software Communications Ltd. (UTV IN) slid 10 percent to 319.20 rupees. Gitanjali Gems Ltd. (GITG IN) fell 11 percent to 66.80 rupees. Balaji Telefilms Ltd. (BLJT IN) retreated 9.4 percent to 42.35 rupees. Reliance Industrial Infrastructure Ltd. (RIIL IN) dropped 13 percent to 650.50 rupees.
ACC Ltd. (ACC IN) gained 4.9 percent to 646.70 rupees. India's biggest cement maker said first-quarter profit rose 13 percent to 4.05 billion rupees. Profit beat the 3.36 billion rupee median estimate in a Bloomberg survey.
Axis Bank Ltd. (AXSB IN) fell 4.4 percent to 472.15 rupees. The Indian lender was reduced to "sell" from "hold" at Deutsche Bank AG, which cited concern over credit quality and a change in management.
Rolta India Ltd. (RLTA IN) declined 15 percent to 87.50 rupees. The stock was cut to "hold" from "buy" at BNP Paribas, which cited the company's "weak" third-quarter results.
Wipro Ltd. (WPRO IN): The No. 3 software developer gained 2.4 percent to 281.05 rupees. Net income climbed to 9.07 billion rupees in the three months ended March 31. The rupee's 21 percent decline against the dollar in the past year has helped Wipro hold down prices, enabling U.S. customers to save costs as they contend with the worst recession in six decades. Wipro was expected to report profit of 8.9 billion rupees, according to the median estimate in a Bloomberg survey.
To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net
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