(Reuters) – Indian shares were off to a muted start on Friday after a four-day slide on lacklustre earnings and persistent foreign outflows, dragged down by a drop in private lender IndusInd Bank and power company NTPC on disappointing quarterly results.
The NSE Nifty 50 was 0.08% lower at 24,379.45 points as of 9:25 a.m. IST, while S&P BSE Sensex inched down 0.05% to 80,020.48.
The Nifty 50 and the BSE Sensex have dropped about 2% and 1.5%, respectively, so far this week and are on course for their fourth straight week of declines – longest such losing streak since August 2023.
Both the benchmarks are down about 7% from record highs hit on Sept. 27 and are on track for their worst monthly performance since March 2020.
Analysts attributed the drop to dull earnings and persistent foreign selling over the last 19 sessions, as investors redirected funds to China from India on Beijing’s stimulus measures and relatively cheaper valuations.
Shares of Nifty 50 constituent IndusInd Bank fell 10% after the lender reported a surprise drop in its September-quarter profit due to stress in microfinance loans, which led to higher provisions, lower asset quality and narrow lending margins.
NTPC lost 2.3% after it posting a profit drop in the second quarter on lower power generation.
Nine of the 13 major sectors logged losses at the open. The broader, more domestically focussed small- and mid-caps shed 0.5% each.
Meanwhile, other Asian markets opened higher, tracking Wall Street’s positive overnight close as strong earnings allayed worries over U.S. presidential elections. [MKTS/GLOB]
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Subhranshu Sahu and Sumana Nandy)
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