India Stocks Mark Longest Losing Streak in More Than Two Months
India Stocks Snap Longest Losing Streak in More Than Two Months
(Bloomberg) -- Indian equities fell for a sixth straight session, marking their longest losing streak in more than two months, as concern over bad-debt risks in the economy outweighed a mostly positive start to the earnings season.
The benchmark S&P BSE Sensex Index gave up gains of as much as 0.9% to end marginally lower at 37,830.98 as of the 3:30 p.m. close in Mumbai, while the NSE Nifty 50 Index dropped 0.2%. Both gauges marked their longest losing streaks and lowest closes since mid-May, bringing them close to oversold demarcation on a technical indicator.
The central bank has said it detected “signs of fragility” in some financial firms and is monitoring to prevent contagion and a potential surge in bad debt. Budget measures to impose higher taxes on the wealthy and some foreign funds spooked investors last week.
Of the 14 Nifty companies that have reported earnings so far, ten have either met or exceeded analyst estimates. Tata Motors Ltd., Bajaj Finance Ltd. and Bajaj Finserv Ltd. will announce earnings later today.
Strategist View
- “The focus of investors would be on Q1FY20 earnings season, as it is likely to induce stock specific volatility,” said Ajit Mishra, vice president of research at Religare Broking Ltd.
The Numbers
- Eleven of the 19 sector sub-indexes compiled by BSE Ltd. declined, led by a gauge of Oil and gas stocks.
- Fifteen of the 31 Sensex members and 28 of the 50 Nifty stocks declined.
- Tata Motors was the top loser on the benchmark while Vedanta Ltd. rose the most.
Analyst Notes/Equity-Related Stories
To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo Towie, Naoto Hosoda
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