India's main share index fell to its lowest close in six weeks on Tuesday after disappointing earnings from a mid-sized software services firm. The 30-share Mumbai Stock Exchange index ended 1.4 percent lower at 6,222.87 points, its worst close since November 29. "The index will remain rangebound and will only rally again if earnings are better-than-expected," said Ajit Sanghvi, director of MSS Securities.
EmphasiS BFL Ltd said its third-quarter net profit fell 6 percent from a year earlier to 268.6 million rupees, and well below the 327 million rupees analysts polled by Reuters had expected. It also cut guidance for the full year.
The results knocked $32 million off the company's market value. Its shares dived as much as 8.5 percent to a six-month low of 252 rupees, before ending down 6.5 percent at 257.35 rupees - its lowest close since June 29, 2004.
"We had disappointing earnings from MphasiS, metals are looking weak globally, oil prices are up, and foreign fund flows have slowed down," Sanghvi said.
Foreign funds, which bought a record $8.5 billion worth of Indian shares in 2004, have sold more than $43 million over the past four sessions.
Infosys Technologies Ltd, the No 2 exporter, which reports earnings on Wednesday, fell 1.2 percent to 1,970.95 rupees. A Reuters poll has estimated the company's third-quarter net profit to have risen 45.8 percent from a year ago to 4.79 billion rupees.Metals continued to slide on lower global prices. Aluminium products makers Hindalco Industries Ltd fell nearly 4 percent to 1,252.40 rupees, while state-run Steel Authority of India Ltd dropped 4.1 percent to 57.30 rupees.
Ranbaxy Laboratories Ltd slipped 4.7 percent to 1,109.55 rupees.
The benchmark 10-year yield fell to 6.5471 percent from Monday's 6.5917 percent.
Comments
Comments are closed.