Indian Stocks Decline as Investors Mull Outlook for Earnings

Indian stocks declined, after swinging between gains and losses, as investors mulled the outlook for company earnings after software services provider Wipro Ltd. declined to provide guidance for the first time since 2009.

The S&P BSE Sensex dropped 0.5% to 30,224.97 as of 10:13 a.m. in Mumbai, after swinging between a loss of as much as 1.2% and a gain of as much as 0.3%. The NSE Nifty 50 Index declined 0.4% after earlier fluctuating.

Wipro, which gets most of its sales abroad, refrained from giving an outlook until it has greater certainty, it said when reporting quarterly results after market close Wednesday. The stock dropped 0.9%. Larger rival Tata Consultancy Services Ltd. is scheduled to report earnings after the market closes today. India’s economy may be heading for its first full-year contraction in more than four decades as the country remains under the world’s biggest lockdown to contain the coronavirus outbreak.

“Investors are focused more toward the potential negative side on earnings,” said Amit Khurana, head of research at Dolat Capital Market Pvt, “Especially if banks and financial players indicate in any fashion a worsening of the picture, that could have a major impact.”

The rupee weakened 0.4% to 76.7875 per U.S. dollar, while the 10-year bond yield was little changed at 6.43%.

The Numbers:

Ten of 19 sector sub-indexes compiled by BSE Ltd. advanced, led by a gauge of energy companies

Twenty-four Sensex shares fell while six rose

Reliance Industries Ltd. provided the biggest boost to the index with a 2% jump, Larsen & Toubro Ltd. had the biggest gain, rising 2.6%; Infosys Ltd. was the biggest loser and drag on the index with a 3.8% drop

Source : Bloomberg

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