Bloomberg
Key Indian equities indexes capped their worst decline for the month of July in 17 years, even as shares eked out gains on Wednesday.
The benchmark S&P BSE Sensex climbed 0.2 percent to 37,481.12 in Mumbai, easing its decline this month to 4.9 percent. The NSE Nifty 50 Index gained 0.3 percent to 11,118.00 and is down 5.7 percent in July.
Weak global cues, the slowing of the local economy and consumption, a new federal budget that has failed to provide stimulus while raising taxes on the rich, and an ongoing credit
crisis among non-bank finance lenders have roiled investor sentiment.
The key equity indexes have now slumped at least 7 percent from their all-time high closes in June.
“The near-term outlook isn’t great for local equities and there’s nothing really to get anyone excited,†said Andrew Holland, chief executive officer at Avendus Capital Ltd in Mumbai.
“Markets have already priced the expected interest-rate cuts by the US and local central banks, but at the same time they are also factoring that the local economy isn’t going to turn around quickly,†he said.
Fifteen of the 19 sector indexes compiled by BSE Ltd gained, paced by a gauge of metal stocks.
Twenty-two of the 31 Sensex members and 36 of the 50 Nifty companies advanced.
Yes Bank Ltd rose 6 percent, the most among Sensex and Nifty members, halting a two-day decline. Rival Axis Bank Ltd dropped 4.7 percent after it reported its net income for the June-quarter that missed analyst estimates.
Coffee Day Enterprises Ltd plunged 20 percent for a second day. Its founder VG Siddhartha, who went missing since Monday, was found dead. The stock fell the most on the S&P BSE 500 Index.
Net incomes at 16 of the 25 Nifty companies that have reported earnings so far have either topped or matched analyst estimates, according to data compiled by Bloomberg.