India equities fall on concern slowing growth to weigh on corporate profits
October 10 2019 10:13 PM
The Bombay Stock Exchange building is seen in Mumbai. The Sensex declined 0.8% yesterday.
The Bombay Stock Exchange building is seen in Mumbai. The Sensex declined 0.8% yesterday.

Bloomberg/ Mumbai

India stocks fell as investors remained concerned that slowing demand will erode corporate profits as the earnings season kicks off.
The July-September earnings reports starting today are set to be tepid, with heightened earnings risks due to slowing economic growth, a lingering shadow banking crisis, and depressed commodity prices, according to Mumbai-based brokerage Motilal Oswal Securities Ltd.
The S&P BSE Sensex declined 0.8% at the close in Mumbai. The gauge had clocked its biggest advance in more than two weeks on Wednesday. The NSE Nifty 50 Index also slipped.
Asia’s largest software services provider Tata Consultancy Services Ltd is scheduled to announce its quarterly results after the close of market today. Smaller peer Infosys Ltd will post its earnings report today.
“The volatility in the index is high given the wild swings that we have been witnessing since last couple of weeks,” Ruchit Jain, analyst with Angel Broking wrote in a note. “However, during this week, the Nifty has given respect to the confluence of support which was placed around 11,100.”
“Till this support is intact, we are hopeful of an up move in near term and hence, traders are advised to look for buying opportunities with a stop loss placed below the swing low of 11090. On the higher side, the immediate resistance for the index is seen around 11350-11400,” he wrote.
Thirteen of 19 sector sub-indexes compiled by BSE Ltd declined, led by a gauge of bank stocks HDFC Bank contributed the most to the index decline, decreasing 2.3% while IndusInd Bank had the largest drop.
Indiabulls Housing Finance tumbled 18.5% while Lakshmi Vilas Bankdropped 4.8% after the central bank rejected their proposal to merge.
Bharti Airtel Ltd surged 5%, while Vodafone Idea Ltd. climbed 6% after Reliance Jio Infocomm Ltd decided to charge its customers for mobile phones calls placed through its network to other operators.

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