India Stocks Fall as Weak Start to Earnings Weighs on Sentiment
(Bloomberg) -- Indian stocks fell as investors remained unimpressed by earnings so far and on concerns that weak factory output will remain a drag on economic growth. Stocks across Asia were trading in the red.
The S&P BSE Sensex fell 0.4 percent to 35,853.56 in Mumbai. The NSE Nifty 50 Index declined 0.5 percent.
Of the three Nifty 50 companies that have announced results so far, two -- Tata Consultancy Services Ltd. and Infosys Ltd. -- have missed analysts’ expectations. India’s industrial production rose at the slowest pace since June 2017 as manufacturing output fell, adding to concerns of slower economic expansion in the second half of the year.
- Sixteen of 19 sub-indexes compiled by BSE Ltd. declined, led by measures of metal and capital-goods companies
- Larsen & Toubro Ltd. and Hero MotoCorp Ltd. were the biggest drags on the benchmark index
- Infosys Ltd. was among top performers on the Sensex after its board approved a buyback; the company also raised its sales forecast citing a “healthy pipeline”
- Jet Airways Ltd. climbed more than 16% on reports that Etihad Airways has agreed to raise its stake in the carrier
- Yes Bank Ltd. surged 6.1% as the private-sector lender’s search for a CEO continued
- “The industrial production data shows extreme weakness in most segments of the economy,” said A. K. Prabhakar, head of research at IDBI Capital Market Services Ltd. “Earnings too so far haven’t provided any positive surprises”
- “Liquidity concerns remain and there are even signs of slowing incremental cash inflow into mutual funds”
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