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India’s Sensex Drops to Lowest Level inTwoYears

MUMBAI - Indian stocks fell, with the benchmark Sensitive Index declining to its lowest in more than two years on speculation that overseas funds faced with redemptions are selling the nation’s equities. Reliance Industries Ltd. tumbled 6.2 per cent to its lowest since March 16, 2007.

Infosys Technologies Ltd., the software developer that gets more than half its revenue from the US, fell 4.8 per cent to its lowest in three years. “Overseas funds are facing redemption pressures and hence we are seeing that selling coming into the market,’’ said Jayesh Shroff, who helps manage about $3.5 billion at SBI Mutual Fundin Mumbai.

Stocks also dropped on concern the US stock market’s wildest swings since 1929 may get even bigger as almost 80 million options expire today. The Bombay Stock Exchange’s Sensitive Index, or Sensex, fell 606.14, or 5.7 per cent, to 9,975.35, its lowest since June 20, 2006.

The benchmark posted its fourth weekly decline, falling 5.3 per cent. All 30 stocks in the index dropped. The S&P CNX Nifty Index on the National Stock Exchange dropped 194.95, or 6 per cent, to 3,074.35.TheBSE200Index lost 5.1 per cent to 1,201.95.

Overseas investors sold a net Rs8.41 billion ($172 million) of Indian equities on October 15, increasing the outflow this year from stocks to a record $11.1 billion, according to the nation’s stock market regulator. Options Expire Reliance, the nation’s most valuable company, slid6.2percenttoRs1,306.05, its lowest since March 16, 2007. Infosys, India’s second-largest software developer, fell 4.8 per cent to Rs1,202.75, the lowest since September 23, 2005.

Tata Consultancy Services Ltd. dropped 8.3 per cent to Rs453.85, the lowest since listing on Aug. 25, 2004. In the US, about a quarter of the approximately 337 million of the most widely owned S&P 500 options will expire today.

The Chicago Board Options Exchange Volatility Index, a measure of expected share-price swings and option prices, surged to an intraday record 81.17 yesterday.

It dropped 2.4 per cent to 67.61 at the close of trading. The following were among the most active stocks traded on the Bombay and National stock exchanges.

Stock symbols are in parentheses after company names: Refiners: India’s state refiners rose after crude oil yesterday fell $4.69, or 6.3 per cent, to$69.85abarrel,thelowestsettlement since August 23, 2007.

Crude traded at $71.50 a barrel at 9:56 a.m. London time on the new York Mercantile Exchange. Indian Oil Corp. (IOCL IN), the nation’s largest refiner by capacity, rose Rs17.35, or 4.5 per cent, to Rs405. Bharat Petroleum Corp. (BPCL IN), the second biggest, added Rs3.2, or 0.9 per cent, to Rs353.95. Hindustan Petroleum Corp., the No. 3, climbed Rs7.7, or 3.4 per cent, to Rs235.60. HDFC Bank Ltd. (HDFCB IN) dropped Rs66.95, or 6.1 per cent, to Rs1,026.35. India’s second largest lender by market value had its stock rating cut to “neutral’’ from “outperform’’ by analyst Aditya Singhania at Credit Suisse. Housing Development Finance Corp. (HDFC IN) fell Rs22.7, or 1.3 per cent, to Rs1,782.05.

India’s biggest mortgage lender reported second-quarter profit excluding one-time gains from investments rose 33 per cent. Profit advanced to Rs5.34 billion in the three months ended September 30, from Rs4.03 billion a year earlier, the Mumbai-based company said in an emailed statement. Jet Airways (India) Ltd. (JETIN IN) slid Rs15.65, or 6 per cent, to Rs243.85, its lowest level since listing on March 14, 2005.