Indian stocks swing as financial strength of companies in focus

Bloomberg

Indian stocks fluctuated as investor concerns over the financial vulnerability of local companies emerged ahead of the federal budget this week. Shares in major Asian markets were in the red after their US counterparts retreated on signs of slowing global growth.
The S&P BSE Sensex fell 0.2 percent to 35,592.50 at the close in Mumbai after swinging between gains and losses nearly a dozen times throughout the day.
The broader NSE Nifty 50 Index declined 0.1 percent.
Indian government steps to lower the world’s second-highest ratio of bad loans has led to an increasing number of companies struggling to repay debt amid tougher borrowing conditions. Media owner Subhash Chandra faced the wrath of investors after an online news site reported that his Essel Group has links to a company that’s being probed by fraud investigators. All of Essel’s seven listed units plunged, including a record 27 percent tumble at flagship TV broadcaster, Zee Entertainment Enterprises Ltd.
The government will present its federal budget on Friday. Of the 18 NSE Nifty 50 Index companies that have announced results so far, 11 have either met or exceeded analyst estimates.
Nine of the 19 sector indexes compiled by BSE Ltd dropped, led by a gauge of energy companies Housing Development
Finance Corp and HDFC Bank were among the biggest drags on the gauge while Yes Bank was the worst performer. Praj Industries Ltd climbed 16 percent, while Persistent Systems advanced 3.3 percent after earnings beat analyst estimates.