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Sensex, Nifty Edge Lower On Weak Earnings

Sensex, Nifty Edge Lower On Weak Earnings

Bengaluru: 

Domestic shares lost steam and moved lower on Monday clouded by weak corporate results, while bond yields fell after the Finance Minister’s comments in a media interview that the government did not intend to review its overseas borrowing plan.

The broader NSE Nifty fell 0.4 per cent to 11,236.65 as of 10:37 am, while the benchmark BSE Sensex dropped 0.24 per cent to 37,791.91.

Maruti Suzuki India shares fell as much as 2.9 per cent, despite reporting a profit that beat estimates, as the government lowered taxes on electric vehicles.

The government on Saturday slashed taxes on electric vehicles and chargers to encourage the use of more eco-friendly cars.

However, investors in auto stocks did not seem to be ecstatic about the move, as the Nifty Auto index fell 2.8 per cent to a near three-and-a-half-year low, with motorcycle makers TVS Motor and Hero Motocorp dropping as much as 3.5 per cent each.

Vodafone Idea reported a worse-than-expected loss of Rs. 4,874 crore ($707.61 million) on Friday, sending its shares down as much as 10 per cent in morning trading.

“Sentiment is quite weak. Only a few companies are coming up with good numbers this earnings season,” said Rusmik Oza, a vice president at Kotak Securities.

“That is not giving very strong confidence to the market.”

India’s benchmark 10-year bond yield was down 10 bps at 6.43 per cent after falling to 6.42 per cent immediately after the market opened on the back of Finance Minister Nirmala Sitharaman’s comments.

Ms Sitharaman also sought the central bank to cut interest rates “significantly”, the Economic Times reported.

Shares in Indiabulls Housing Finance also fell as much as 9 per cent, after a lawmaker alleged that it embezzled as much as Rs. 1 lakh crore from the National Housing Bank and laundered the money.