Indian Stocks Fall for First Time in Four Days; DLF Declines

June 2 (Bloomberg) -- India's benchmark stock index fell for the first time in four days, led by Reliance Industries Ltd. and DLF Ltd., after investors judged last month's gains excessive.

Reliance, the largest company by market value, fell 1.6 percent, while DLF, the biggest real estate developer, declined 0.7 percent. Ranbaxy Laboratories Ltd. fell 4.7 percent.

"The markets have run up a little ahead of themselves," said Satish Ramanathan, who helps manage the equivalent of $1.6 billion in equities at Sundaram BNP Paribas Asset Management Co. Ltd. in Chennai. "There has to be some stabilization at these levels before the next leg of the pickup happens."

The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 131.74, or 0.9 percent, to 14,708.89 at 11:10 a.m. in Mumbai today. The S&P CNX Nifty Index on the National Stock Exchange lost 1.1 percent to 4,479.85. The BSE 200 Index declined 1.1 percent to 1,787.40.

Reliance fell 1.6 percent to 2,245.05 rupees. DLF declined 0.7 percent to 412.25 rupees. Ranbaxy, India's biggest drugmaker, retreated 4.7 percent to 261.65 rupees.

The Sensex surged 28 percent in May, its biggest monthly gain since March 1992, when the index climbed 51 percent. Gains were boosted by a 17 percent rally on May 18, the first day of trading after the ruling Congress party's biggest election victory in two decades.

The Sensex's relative strength index, which measures how rapidly prices rose or fell during the specified period, has been over 70 for the past three days. Some investors regard readings at 70 and above as a signal to sell.

Reliance also fell after the Economic Times reported that the directorate general of hydrocarbons contested the authenticity gas reserves claims in two areas in the Krishna Godavari basin by Hardy Oil & Gas Plc, citing V.K. Sibal, the director general. Reliance's spokesman Tushar Pania declined to comment. Sibal said by phone from New Delhi today he has called an emergency meeting tomorrow with Reliance and Hardy to discuss the reserves claims.

Indian Stocks Fall for First Time in Four Days; DLF Declines 

June 2 (Bloomberg) -- India's benchmark stock index fell for the first time in four days, led by Reliance Industries Ltd. and DLF Ltd., after investors judged last month's gains excessive.

Reliance, the largest company by market value, fell 1.6 percent, while DLF, the biggest real estate developer, declined 0.7 percent. Ranbaxy Laboratories Ltd. fell 4.7 percent.

"The markets have run up a little ahead of themselves," said Satish Ramanathan, who helps manage the equivalent of $1.6 billion in equities at Sundaram BNP Paribas Asset Management Co. Ltd. in Chennai. "There has to be some stabilization at these levels before the next leg of the pickup happens."

The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 131.74, or 0.9 percent, to 14,708.89 at 11:10 a.m. in Mumbai today. The S&P CNX Nifty Index on the National Stock Exchange lost 1.1 percent to 4,479.85. The BSE 200 Index declined 1.1 percent to 1,787.40.

Reliance fell 1.6 percent to 2,245.05 rupees. DLF declined 0.7 percent to 412.25 rupees. Ranbaxy, India's biggest drugmaker, retreated 4.7 percent to 261.65 rupees.

The Sensex surged 28 percent in May, its biggest monthly gain since March 1992, when the index climbed 51 percent. Gains were boosted by a 17 percent rally on May 18, the first day of trading after the ruling Congress party's biggest election victory in two decades.

The Sensex's relative strength index, which measures how rapidly prices rose or fell during the specified period, has been over 70 for the past three days. Some investors regard readings at 70 and above as a signal to sell.

Reliance also fell after the Economic Times reported that the directorate general of hydrocarbons contested the authenticity gas reserves claims in two areas in the Krishna Godavari basin by Hardy Oil & Gas Plc, citing V.K. Sibal, the director general. Reliance's spokesman Tushar Pania declined to comment. Sibal said by phone from New Delhi today he has called an emergency meeting tomorrow with Reliance and Hardy to discuss the reserves claims.