India's Sensex Has Biggest Drop in Two Weeks; ICICI Declines

India's Sensitive Index fell, posting its biggest drop in two weeks, after Citigroup Inc. said it will increase writedowns, stoking concern U.S. subprime mortgage losses would further weaken the world's biggest economy.
ICICI Bank Ltd. and Reliance Industries Ltd. led the drop.
``The subprime losses are snowballing into something bigger,'' said Amandeep Chopra, who helps manage the equivalent of $1.1 billion of stocks at UTI Asset Management in Mumbai. ``The disappearance of wealth in the U.S. will impact the liquidity-driven rally seen in our market.''
The Bombay Stock Exchange's Sensex fell 385.45, or 1.9 percent, to 19,590.78. The index had its biggest decline since Oct. 19. The S&P/CNX Nifty Index on the National Stock Exchange dropped 85.10, or 1.4 percent, to 5,847.30. Nifty futures for November delivery declined 1.6 percent to 5,861.
Japan's Nikkei 225 Stock Average slid 1.5 percent while Hong Kong's Hang Seng Index slumped 5 percent. All but two Asian markets declined today.
Citigroup said it will take an additional $8 billion to $11 billion in writedowns on mortgage-related securities after its subprime investments slumped. The lender said yesterday Chief Executive Officer and Chairman Charles Prince resigned after $6.5 billion of writedowns and losses from credit markets.
Merrill Lynch & Co. shares fell on Nov. 2 by the most in six years after Deutsche Bank AG analysts said the world's No. 1 brokerage may write down an additional $10 billion for losses on subprime assets. The company reported its biggest quarterly loss in its 93-year history, taking an $8.4 billion writedown that was almost double its forecast.
Oil & Natural Declines
ICICI, India's second-largest lender, fell 59.75 rupees, or 4.5 percent, to 1,270.85. Reliance, which runs the world's third biggest refinery, dropped 49.05 rupees, or 1.8 percent, to 2,663.65. The two stocks account for about a quarter of the Sensex's weight.
Oil & Natural Gas Corp., the country's biggest explorer, slid 67.05 rupees, or 4.9 percent, to 1,299.05, after oil prices fell from a record.
Crude oil for December delivery fell as much as $1.23, or 1.4 percent, to $94.61 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was recently at $94.28. On Nov. 2, oil rose $2.44, or 2.6 percent, to $95.93, the highest closing price since trading began in 1983.
'Good Run'
Oil & Natural Gas ``has had a good run-up on the back of rising oil prices,'' said K.K. Mital, who manages the equivalent of $46 million in assets at Escorts Asset Management in New Delhi. ``Some investors are booking profit at these levels.''
Oil & Natural Gas, which has surged 32 percent over the past month, has had its relative strength index, a moving average based on advances and declines in the previous 14 days, at above 70 since Oct. 31. A reading of 70 indicates to some analysts that the stock is poised to fall.
Overseas funds bought a net 1.81 billion rupees ($44.8 million) of Indian shares on Nov. 1, according to the latest figures from the Securities & Exchange Board of India's Web site.
The following shares rose or fell. Stock symbols are in brackets after company names:
Jet Airways (India) Ltd. (JETIN IN) gained 5.85 rupees, or 0.7 percent, to 828.65. The nation's largest domestic carrier said Nov. 2 it will increase its fuel surcharge by 150 rupees ($3.8) on all types of fares to 1,350 rupees a ticket.
Mahindra & Mahindra Ltd. (MM IN) slid 12.7 rupees, or 1.7 percent, to 742.85. India's biggest maker of sport-utility vehicles and Navistar International Corp., a U.S. truck maker, agreed to spend $90 million in the next five years to make truck engines in India, Mahindra said on Nov. 2.
Hindustan Zinc Ltd. (HZ IN) declined 16.95 rupees, or 1.9 percent, to 865.50. The nation's No. 1 producer of zinc lowered prices of the metal and raised prices of lead. Zinc prices were cut by 2.9 percent to 127,300 rupees a metric ton. Lead prices were increased by 0.3 percent, to 160,900 rupees a ton.
Prime Securities Ltd. (PSEC IN) added 12.2 rupees, or 7.4 percent, to 177.35. The Indian brokerage and securities company's board approved the buyback of up to 24 percent of its equity at a price not exceeding 225 rupees a share.
Punj Lloyd Ltd. (PUNJ IN) rose 32.75 rupees, or 6.6 percent, to 531.15. The Indian construction company's unit won a $450 million contract to build facilities, including jetties and a power plant, at a chemical factory for Jurong Aromatics Corp. in Singapore. Construction will be completed in 2011.