Indian stocks record worst week in two months

Indian shares slumped on Friday, posting a fifth consecutive fall and their worst weekly performance in two months, as disappointing results from ITC and Larsen & Toubro raised concerns about the health of the corporate sector. The broader NSE index ended 0.57 percent lower at 8065.80, its lowest close since October 1.
The benchmark BSE index slipped 0.68 percent to close at 26,656.83, also its lowest close since October 1.
Both indexes reversed two straight months of losses to record gains in October, with the NSE rising 1.47 percent for the month and BSE gaining 1.92 percent.
For the week, the NSE lost 2.77 percent while the BSE lost 2.96 percent, their worst performance since the week ended September 4.
The falls on Friday marked the longest losing streak for indexes since early June, after the central bank had kept interest rates on hold.
Sentiment this week has taken a hit due to caution about earnings and the US Federal Reserve's statement putting into play a rate hike this year.
But indexes were still set to post gains of around 2 percent for October, snapping a two-month losing streak, largely on optimism sparked by the Reserve Bank of India's larger-than-expected 50 basis points rate cut on September 29.
"Quarterly earnings have not been up to street's expectations, that has been discounted but minor impacts will be felt," Alex Mathews head of research at Geojit BNP Paribas said.
Shares in ITC fell as much as 5.5 percent after the company's September quarter earnings missed analysts' estimates. The stock was the biggest drag on the NSE index.
Shares in industrial heavyweight Larsen & Toubro fell over 1 percent after its second-quarter net profit missed street estimates.
But not all companies fell after earnings. ICICI Bank was up 1.57 percent after it reported a 12 percent increase in quarterly profit due to faster retail loans growth.
Kotak Mahindra Bank, India's fourth-biggest private sector lender by assets, reported a better-than-expected 28 percent increase in quarterly profit and a stable bad loan ratio, sending its shares up more than 4 percent.
Jet Airways gained 2.14 percent while Spicejet was up 3.48 percent after India's civil aviation secretary announced a slew of proposed reforms that included raising foreign direct investments in airlines to 50 percent.