Mumbai : Indian stocks dropped for the first time this week as some investors bet the rally in the benchmark index to a record has outpaced the outlook for earnings growth. Ranbaxy Laboratories , the nation's largest drugmaker, tumbled 19 per cent after regulators banned it from producing or selling drug ingredients for the US market from a fourth plant in India . Power-equipment maker Bharat Heavy Electricals was the worst performer on the S&P BSE Sensex. Housing Development Finance Corp. slid the most in a week. The Sensex lost 1.1 per cent to 21,133.56 at the close in Mumbai , paring the weekly gain to 0.3 per cent. The gauge rose for a fourth day on Thursday, the biggest stretch of gains since November, as all eight companies on the index that announced earnings so far for the December quarter have beaten or matched analyst forecasts. The Sensex traded at 13.2 times projected 12-month earnings, compared with the three-year average of 13.5 times, data compiled by Bloomberg show. "Given the rally in the past few days some profit-booking was expected," U.R. Bhat , managing director of Dalton Capital Advisors India, said by phone yesterday. "With an event like the monetary policy due next week, traders don't like to keep large open positions," he added.
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