BSE Sensex ends lower; earnings eyed

MUMBAI Wed Jan 9, 2013 5:14pm IST

Commuters walk past the Bombay Stock Exchange (BSE) building in Mumbai February 28, 2011. REUTERS/Danish Siddiqui/Files

Commuters walk past the Bombay Stock Exchange (BSE) building in Mumbai February 28, 2011.

Credit: Reuters/Danish Siddiqui/Files

Related Topics



MUMBAI (Reuters) - The BSE Sensex fell on Wednesday as two-wheeler makers such as Bajaj Auto retreated after an industry body cut its estimates for motorcycle sales, while software services exporters fell ahead of earnings announcement.

After a strong start to the year, investors are turning more cautious ahead of third-quarter earnings reports. Infosys Ltd(INFY.NS) will kick off the blue-chip reporting season on Friday.

Even more important will be the corporate profit outlook for the year, at a time of optimism that an expected interest rate cut by the Reserve Bank of India on January 29 will help support economic growth.

"Third-quarter earnings growth should be better than second-quarter, or else the market is likely to show signs of nervousness," said R.K. Gupta, managing director at Taurus Mutual Fund.

Any positive surprise cannot be ruled out, Gupta added.

The BSE Sensex fell 0.38 percent, or 75.93 points, to end at 19,666.59. However, the index is still up 1.63 percent for the month.

The broader Nifty ended 0.5 percent, or 30.20 points, lower at 5,971.50.

Shares in two-wheeler makers were hit after the country's automobile industry association cut FY13 motorcycle sales growth forecast to 3-5 percent from 5-7 percent earlier.

Bajaj Auto (BAJA.NS) shares fell 1.84 percent while Hero MotoCorp (HROM.NS) lost 1.8 percent.

Software services exporters also fell. The December quarter is a seasonally weak one for technology companies, and analysts are waiting for management comments on outlook.

Infosys (INFY.NS) fell 0.55 percent while Tata Consultancy Services (TCS.NS) ended down 1.8 percent.

Larsen & Toubro Ltd (LART.NS) extended its recent fall and ended 1.1 percent lower. Citigroup and Barclays downgraded the engineering conglomerate on Tuesday on concerns over order cancellations and weak investment cycle.

Among gainers, Tata Motors Ltd (TAMO.NS) closed 4.2 percent higher after hitting a record high of 330.35 rupees, as Credit Suisse and CLSA upgraded their ratings on the stock, citing expectations of improving sales.

Oil marketing companies, among the top performers this month, gained on hopes the government will announce diesel reforms soon. Hindustan Petroleum Corp (HPCL.NS) rose 4 percent while Bharat Petroleum Corp (BPCL.NS) gained 1.3 percent.

Shares in Havells India Ltd (HVEL.NS) gained 4.82 percent as analysts lauded the transfer of the brand name 'Havells' from one of its promoters to the company at no cost, which is expected to save on royalty payments and improve corporate governance.

(Editing by Subhranshu Sahu)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared



Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 



Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage