India's Sensex Falls; Lenders Drop as Software Developers Gain

India's Sensitive Index fell, with ICICI Bank Ltd. leading financial shares lower after JPMorgan Chase & Co. cut its earnings estimates for lenders.

``We expect balance-sheet growth, and correspondingly fee income, to slow down,'' Sachin Sheth, an analyst at JPMorgan, said in a note to clients. ``The combination of lower top-line growth and higher provisions is likely to squeeze earnings growth below current consensus estimate levels.''

Infosys Technologies Ltd. led gains among software developers after Credit Suisse Group raised its rating, along with that of two rivals, saying lower costs will help companies maintain profitability.

The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, slid 12.09, or 0.1 percent, to 8,903.12. The S&P CNX Nifty Index on the National Stock Exchange added 14.80, or 0.6 percent, to 2,708.25. The BSE 200 Index fell less than 0.1 percent to 1,048.17.

ICICI, the nation's second-largest lender, fell 3.4 percent to 322.55 rupees. HDFC Bank, the No. 3, declined 3.2 percent to 829.10 rupees. Axis Bank Ltd. slid 3.4 percent to 397.55 rupees.

JPMorgan cut its earnings estimates for the fiscal year ending March 2010 for HDFC Bank, ICICI and Axis Bank by between 10 percent and 30 percent, according to the note.

Tata Consultancy Services Ltd., India's largest software developer, had its stock rating raised to ``outperform'' at Credit Suisse. Infosys Technologies' stock rating was raised to ``outperform'' from ``neutral,'' while Wipro Ltd. was rated ``outperform'' from ``under-perform'' at Credit Suisse.

Tata Consultancy added 2.7 percent to 519.90 rupees. Infosys climbed 1 percent to 1,196.20. Wipro, India's third- largest provider of software services, added 1.9 percent to 234.20 rupees.

Overseas funds sold a net 5.14 billion rupees ($127.4 million) of Indian stocks on Nov. 21, increasing outflows from stocks this year to $13.4 billion, the market regulator said.

The following were among the most active shares traded on the Bombay and National stock exchanges. Stock symbols are in parentheses after company names:

Bharti Airtel Ltd. (BHARTI IN) rose 18.95 rupees, or 3.1 percent, to 637.80. India's largest mobile-phone operator's stock rating was raised to ``buy'' from ``hold'' at Deutsche Bank AG.

Firstsource Solutions Ltd. (FSOL IN): The back-office services provider controlled by ICICI Bank Ltd. gained 0.6 of a rupee, or 4.9 percent, to 12.85, the most since Nov. 10, after it reported a second-quarter profit of 282.8 million rupees compared with a loss of 500.4 million rupees a year ago.

Great Offshore Ltd. (GOFF IN) fell 21.55 rupees, or 7.5 percent, to 267.60, the most since Nov. 17. The oil and gas drilling company's founder Vijay Sheth may sell his stake in the company to banks and financial institutions, the Economic Times said on Nov. 22, citing people it didn't identify.

Sterlite Industries (India) Ltd. (STLT IN) slid 2.6 rupees, or 1.2 percent, to 215.30. The nation's largest copper producer expects to lose 23,000 metric tons of production after damage to a cooling tower shut its southern Indian smelter.

Wockhardt Ltd. (WPL IN) climbed 1.85 rupees, or 2 percent, to 94.95. The Indian drugmaker is in talks with some private equity investors to raise as much as $200 million, the Mint newspaper reported on Nov. 22, citing two unidentified people familiar with the plan.