India Stocks Set for Weekly Loss Ahead of Diwali
Trading is likely to slow over the next few days as investors break for a holiday to celebrate the Hindu festival of Diwali.
(Bloomberg) -- Indian stocks saw a second weekly decline in four ahead of a special one-hour session on Sunday.
The S&P BSE Sensex was little changed at 39,058.06 at the 3:30 pm close in Mumbai, which meant a drop of 0.6% in a four-day trading week. The NSE Nifty 50 Index was also flat.
Trading is likely to slow over the next few days as investors break for a holiday to celebrate the Hindu festival of Diwali. Brokerages are relatively optimistic on the outlook for stocks ahead of Sunday’s Muhurat trading session, considered auspicious by traders.
Of the 23 Nifty companies that have announced results so far, sixteen have either matched or exceeded analyst estimates, while one didn’t have any estimates. Tata Motors Ltd., is expected to announce results later today.
Strategist View
“Volume is likely to be down 20-30% today as Diwali celebrations begin. Most people are not in town,” said A. K. Prabhakar, head of research at IDBI Capital Market Services Ltd., “Due to low volume, volatility will be higher until Wednesday.”
The Numbers
- Twelve out of 19 sector sub-indexes compiled by BSE Ltd. dropped, led by a gauge of consumer durables companies.
- ICICI Bank Ltd. contributed most to the index gain, advancing 3.2%, while Yes Bank Ltd. was the top performer with an 8% jump; HDFC Ltd. was the biggest drag on the index with a 2% decline, while Tata Motors had the biggest drop, falling 4.9%
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To contact the reporter on this story: Ronojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo Towie, Anto Antony
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