May 8, 2019 / 6:12 AM / a month ago

Indian shares fall for sixth session as Zee, Vedanta drag

* NSE index down 0.80 pct, BSE index 0.77 pct lower

* Weak quarterly earnings hurting sentiment - analyst

* Vedanta falls despite Q4 profit beating estimates

By Arnab Paul

May 8 (Reuters) - Indian shares fell on Wednesday, tracking broader Asian equities, with investors switching to safe-haven government bonds as risk appetite was dented on worries of an unsuccessful U.S.-China trade negotiation.

Chinese Vice Premier Liu He will travel to Washington for a two-day meet beginning Thursday in a last ditch attempt to avoid a sharp increase in tariff on $200 billion worth of Chinese goods.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.75 percent, stooping to its lowest level since late March.

Benchmark 10-year yields on U.S. Treasuries, German bunds and Japanese government bonds (JGBs) sank to one-month lows.

The NSE index was down 0.80 percent at 11,405.5 as of 0601 GMT, while the BSE index was 0.77 percent lower at 37,980.93.

Both the exchanges were on track to post sixth straight session of losses, their worst run in nearly two months.

Subdued corporate results and caution ahead of national election outcome also weighed on indexes, according to an analyst.

“Earnings have been below market expectations so far and that is one of the primary reasons for the sell-off,” said R.K. Gupta, managing director at Taurus Asset Management in New Delhi.

“Another reason for this profit-booking is elections. Investors, especially institutions, are not going long ahead of the outcome of the national election on May 23.”

Among stocks, index heavyweight Reliance Industries Ltd was down for the third day, falling 2.5 percent

Vedanta Ltd fell as much as 4.1 percent after CLSA cut price target and retained ‘sell’ rating, citing concerns on slow volume ramp-up in zinc & oil and increased costs in its unit Hindustan Zinc Ltd.

The miner reported a better-than-expected net profit after market hours on Tuesday.

Zee Entertainment Enterprises Ltd slumped 9 percent and was the top percentage loser on the NSE index, after an analyst report said that the company was among the highest in promoter share pledges as of March.

Stock exchange BSE Ltd’s shares fell as much as 4.1 percent after reporting a 16.5 percent dip in quarterly profit on Tuesday. (Reporting By Arnab Paul in Bengaluru; editing by Uttaresh.V)

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