Indian Stocks Fall for Second Day Amid Earnings and Elections
(Bloomberg) --
Indian equities declined for a second day after a session of fluctuating trade as investors continue to assess company earnings reports for the first three months of 2019 and speculate on the outcome of the national polls due May 23.
The S&P BSE Sensex fell 0.1 percent to 38,981.43 at the close in Mumbai, after rising and falling as much as 0.4 percent in the day. The NSE Nifty 50 Index retreated 0.2 percent to 11,724.75.
Polling in India's national election ends on May 19 and a coalition led by Prime Minister Narendra Modi is seen regaining control of the government with a reduced majority, according to at least four opinion polls held in March. Voting is ongoing amid the corporate earnings season, which is scheduled to run through this month. Net income at 11 of the 15 Nifty companies that have reported so far have either beaten or matched analyst estimates, data compiled by Bloomberg showed.
Strategist View
- “It seems that the incumbent government coming back to power is a more likely scenario as the opposition doesn't look like extracting the issues such as jobs and other economic data points,” said Abhimanyu Sofat, head of research at IIFL Securities Ltd. in Mumbai.
- It's better to be on the sidelines and actually see what the actual outcome is, he said.
The Numbers
- Thirteen of the 19 sector indexes compiled by BSE Ltd. fell, led by a gauge of software services exporters. The rupee is headed for a third straight day of gains against the dollar, rising 1.2 percent in the period.
- Sixteen of the 31 Sensex members and 27 of the 50 Nifty companies slipped.
- Biscuits maker Britannia Industries Ltd. dropped 3.9 percent, the most since November 2016, after it reported its net income and revenue that matched estimates.
- Yes Bank Ltd.'s 3.4 percent gain was the steepest among Nifty members. The non-state lender had plunged by a record 29 percent on April 30 after reporting an unexpected loss.
Analyst Notes/Market-Related Stories
- A $158 Million Penalty Clears Cloud Over Top Indian Bourse's IPO
- Kotak Mahindra Downgraded to Neutral at Nomura; PT 1,450 Rupees
- Container Corp Rises After Posting 20% Quarterly Profit Growth
To contact the reporter on this story: Ameya Karve in Mumbai at akarve@bloomberg.net
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie, Tom Redmond
©2019 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
