Sensex heads for second consecutive weekly fall

MUMBAI (Reuters) – The BSE Sensex and Nifty fell on Friday, heading for a second consecutive weekly fall, as blue-chips such as ICICI Bank (ICBK.NS) declined on worries that stocks have gone ahead of underlying anaemic earnings growth.

October-December was the third straight quarter when earnings lagged expectations since Narendra Modi’s anointment as India’s prime minister in May last year, prompting investors to pare some positions.

Twelve-month forward earning estimates for India’s large- and mid-cap companies have fallen by 5.1 percent over the last three months, Thomson Reuters StarMine data showed.

Falls also tracked lower Asian stocks as Federal Reserve-inspired gains petered out, while the dollar steadied after rebounding from the shock of a surprisingly dovish U.S. central bank.

“Earnings are expected to remain weak for the fourth quarter as well,” said Deven Choksey, managing director, K R Choksey Securities.

U.S. dollar strength is also driving some funds to pare their positions, he added.

The Sensex was down 0.4 percent, while the Nifty lost 0.46 percent, heading for a third consecutive session of declines.

The 30-shares index is down 0.52 percent for the week while the NSE index has so far marked a weekly decline of 0.64 percent.

ICICI Bank lost 2 percent while ITC (ITC.NS) fell 1.3 percent.

Benchmark indexes were also under pressure after NTPC (NTPC.NS) shares fell 6 percent on going ex-debenture.

(Reporting by Abhishek Vishnoi; Editing by Sunil Nair)

Rules of Discussion on Sensex heads for second consecutive weekly fall

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
Loading comments …