Singapore: Indian equities declined, with key indexes marking their worst week in two months, amid investor disappointment over the budget and concern about the outlook for corporate earnings.
The benchmark S&P BSE Sensex slipped 0.2% to 38,736.23 at the close in Mumbai, while the NSE Nifty 50 Index fell 0.3%, marking its fifth day of falls in six. Both measures dropped about 2% for the week after a mixed start to the quarterly earnings season added to budget gloom.
Infosys Ltd. reports results Friday, and inflation and factory output data are also scheduled. IndusInd Bank Ltd.’s first-quarter net income beat estimates on Friday after Tata Consultancy Services Ltd., India’s most valuable company, kicked off the earnings season on Tuesday with slower-than-expected sales growth.
Strategist View
- “Given the economic slowdown we expect the earnings season to be tepid, which will lead to stock-specific volatility,” said Ajit Mishra, vice president of research at Religare Broking Ltd. Inflation and factory output data will provide some direction to investors, he said.
- “We expect the markets to remain choppy in the near term in the backdrop of weak domestic cues,” Mishra said.
- Sensex Index has closed “down for the week as markets reacted negatively to the union budget announcements related to enhanced tax surcharge on high income earners,” Sanjeev Zarbade, vice president of research at Kotak Securities Ltd.
The Numbers
- Ten of the 19 sector indexes compiled by BSE Ltd., led by a gauge of telecom stocks.
- Sixteen of the 31 Sensex members and 28 of the 50 Nifty stocks declined.
- Bajaj Finance Ltd. was the top loser on the benchmark while Hero MotoCorp Ltd. gained the most. – Bloomberg
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