STOCK MARKET BSE NSE

Sensex Retreats From Three-month High; Earnings in Focus

Indian shares fell, after hitting a near three-month high, as investors braced for yet another weak quarter for earnings.

Published: 01st April 2016 02:55 PM  |   Last Updated: 01st April 2016 02:55 PM   |  A+A-

Sensex_Reuters

Bombay Stock Exchange (File|Reuters)

BENGALURU: Indian shares fell on Friday, a day after hitting a near three-month high, as investors braced for yet another weak quarter for earnings, and after weak business sentiment data from Japan rekindled global growth worries.

Business sentiment among Japan's big manufacturers deteriorated to the lowest in nearly three years and is expected to worsen in the coming quarter, a closely watched central bank survey showed on Friday.

Asian shares and the dollar both lost more ground as investors began the new quarter in a cautious mood, with glimmers of life in China's economy offset by a darkening mood in Japan.

Markets back home were also a bit groggy after rallying about 10 percent in March following a fiscally prudent union budget and amid expectations of a 50 basis point rate cut by the Reserve Bank of India (RBI) on April 5.

"Whatever happened in the month of March was the rally of March. Now I'm expecting a correction as the results season is likely to start and things will get difficult from here on," said AK Prabhakar, head of research at IDBI Capital.

Analysts have been cutting projections for the March quarter, due to a surge in bad loans for Indian banks, oil price slump and weak global demand.

If the declining projections are realised, already costly stocks could become pricier and equity investors could become even more skittish.

The broader NSE Nifty was down 0.77 percent at 7,678.55 at 1.03 p.m., while the benchmark BSE Sensex was down 0.74 percent at 25,154.12. Both indexes hit their highest level since Jan. 6 on Thursday.

Automakers Tata Motors (TAMO.NS) and Mahindra and Mahindra (MAHM.NS) fell more than 1 percent after the Supreme Court on Thursday extended a ban on the sale of large diesel cars in New Delhi until the next hearing of the case.

Infrastructure firm IVRCL (IVRC.NS) slumped 7 percent after a flyover, which the company was building, collapsed on Thursday in Kolkata.

Among the gainers, Jaiprakash Associates (JAIA.NS) surged 9 percent after UltraTech Cement's (ULTC.NS) board approved a deal to buy the former's identified cement plants at an enterprise value of 159 billion rupees.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp