Indian shares log sixth weekly losses in seven on dull earnings, foreign outflows

Indian shares inched lower on Thursday, logging their sixth weekly loss in seven, as worries about a slowdown in consumption added to concerns over earnings moderation and foreign outflows.

The NSE Nifty 50 fell 0.11% to 23,532.7, closing below its 200-day moving average for the first time since April 2023. The BSE Sensex shed 0.14% to end at 77,580.31.

Both the benchmarks lost about 2.5% for the week. Twelve of the 13 major sectors logged weekly losses. The small- and mid-caps underperformed, losing 4.6% and 4.1%, this week.

The market will be closed on Friday for a local holiday.

The Nifty and the small- and mid-cap indexes had slipped into correction in the previous session after a prolonged weak spell.

The weakness, which pulled the Nifty down 10% from its record high on Sept. 27 and confirmed the correction, has chiefly been due to a disappointing corporate earnings season and foreign outflows worth $15 billion in the last 33 sessions.

Indian shares, including Nifty 50, slip into correction as rate woes adds to sour sentiment

Adding to that, data earlier this week showed inflation jumped, fanning fears of a consumption slowdown and dampening hopes of a domestic rate cut in the near-term.

“We see further pain for domestic equities, given the relentless foreign selling, earnings weakness and the slowing volume growth in consumption, the largest part of the economy,” said Pramod Gubbi, co-founder of Marcellus Investment Managers.

“Valuations are still expensive. Plus, U.S. election results imply a high yields-strong dollar regime, which is not good for emerging markets like India.”

Among the bright spots on the day, Royal Enfield motorcycles maker Eicher Motors jumped 6.4%, the most on the Nifty, after its quarterly profit beat market expectations.

Britannia tumbled 14.5% in its worst week in 24 years, with most coming after the biscuits maker posted a smaller-than-expected profit late on Monday.

Asian Paints slid 10.3% in its worst week since February 2022 after reporting a smaller-than-expected quarterly profit last weekend.