By -
Aug 1, 2014
Indian stocks fell for a second day,
with the benchmark index set to end two weeks of gains, amid a
global equity selloff and on concern local share prices have
exceeded the outlook for profit.
Software maker Tech Mahindra Ltd. tumbled the most since May after its first-quarter profit missed estimates. DLF Ltd. (DLFU), India’s biggest developer, retreated for a second day after its earnings dropped 29 percent. Larsen & Toubro Ltd. (LT) slid for a fifth day, the longest losing streak in three months. The rupee weakened for a second day.
The S&P BSE Sensex (SENSEX) retreated 0.5 percent to 25,762.91 at 10:16 a.m. in Mumbai, taking this week’s loss to 1.4 percent. The gauge gained 1.9 percent in July, a sixth monthly advance and the longest run of gains since the eight months through January 2007. The MSCI Asia Pacific Index fell today, extending a global selloff amid weaker-than-forecast corporate earnings in the U.S. and fresh concerns over credit markets.
“Global cues are not supportive,” Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd., said by telephone from Kerala. “Some of the stocks had moved up really sharply and earnings have yet to catch up. That is a bit of a concern for investors.”
The Sensex has increased 22 percent this year, the best performer among the world’s 10 biggest markets, and is valued at 15.4 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s multiple of 11.
The Standard & Poor’s 500 Index slumped 2 percent yesterday, while the Dow Jones Industrial Average dropped 1.9 percent to erase the year’s gains as Exxon Mobil Corp. to Micron Technology Inc. tumbled amid weaker earnings.
In India, nine of the 16 Sensex companies that have posted results so far for the June quarter have exceeded or matched forecasts. About 60 percent of companies beat or matched profit estimates in the March quarter, compared with 73 percent three months earlier.
The rupee weakened 0.5 percent to 60.8662 per dollar as improvement in the U.S. economy boosted the dollar and a debt default in Argentina stoked concerns that fund inflows into emerging markets may slow.
Foreigners sold $45.9 million of Indian stocks on July 28, the first net outflow in 10 days. That pared this year’s purchases to $12.1 billion, still the most among eight Asian markets tracked by Bloomberg.
Bharat Heavy Electricals Ltd. (BHEL) may report today that net income fell 29 percent from a year earlier in the three months ended June to 3.28 billion rupees ($54.2 million), according to the median estimate of 35 analysts in a Bloomberg survey. The shares slid 0.6 percent.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar, Matthew Oakley
Software maker Tech Mahindra Ltd. tumbled the most since May after its first-quarter profit missed estimates. DLF Ltd. (DLFU), India’s biggest developer, retreated for a second day after its earnings dropped 29 percent. Larsen & Toubro Ltd. (LT) slid for a fifth day, the longest losing streak in three months. The rupee weakened for a second day.
The S&P BSE Sensex (SENSEX) retreated 0.5 percent to 25,762.91 at 10:16 a.m. in Mumbai, taking this week’s loss to 1.4 percent. The gauge gained 1.9 percent in July, a sixth monthly advance and the longest run of gains since the eight months through January 2007. The MSCI Asia Pacific Index fell today, extending a global selloff amid weaker-than-forecast corporate earnings in the U.S. and fresh concerns over credit markets.
“Global cues are not supportive,” Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd., said by telephone from Kerala. “Some of the stocks had moved up really sharply and earnings have yet to catch up. That is a bit of a concern for investors.”
The Sensex has increased 22 percent this year, the best performer among the world’s 10 biggest markets, and is valued at 15.4 times projected 12-month profits, compared with the MSCI Emerging Markets Index’s multiple of 11.
The Standard & Poor’s 500 Index slumped 2 percent yesterday, while the Dow Jones Industrial Average dropped 1.9 percent to erase the year’s gains as Exxon Mobil Corp. to Micron Technology Inc. tumbled amid weaker earnings.
In India, nine of the 16 Sensex companies that have posted results so far for the June quarter have exceeded or matched forecasts. About 60 percent of companies beat or matched profit estimates in the March quarter, compared with 73 percent three months earlier.
The rupee weakened 0.5 percent to 60.8662 per dollar as improvement in the U.S. economy boosted the dollar and a debt default in Argentina stoked concerns that fund inflows into emerging markets may slow.
Foreigners sold $45.9 million of Indian stocks on July 28, the first net outflow in 10 days. That pared this year’s purchases to $12.1 billion, still the most among eight Asian markets tracked by Bloomberg.
Bharat Heavy Electricals Ltd. (BHEL) may report today that net income fell 29 percent from a year earlier in the three months ended June to 3.28 billion rupees ($54.2 million), according to the median estimate of 35 analysts in a Bloomberg survey. The shares slid 0.6 percent.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Ravil Shirodkar, Matthew Oakley
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