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Indian Shares Fall On Earnings, Global Cues

Indian shares fell sharply on Friday, with SBI, Tata Steel and ONGC leading the decliners after announcing their quarterly earnings.

Global cues also remained subdued, with stocks extending losses in Asia and Europe as investors awaited U.S. President Barack Obama's first official statement on the economy later in the day. Obama will deliver a public statement about actions needed to avoid the "fiscal cliff" that refers to various tax hikes and budget cuts set to take into effect at the beginning of January, if lawmakers and the White House fail to act once again.

The benchmark 30-share Sensex ended the session down 163 points or 0.86 percent at 18,684, with 26 of its components retreating. Among those that bucked the downward trend, HDFC Bank, Cipla, Maruti Suzuki and Bajaj Auto ended up between 0.1 percent and 0.4 percent.

SBI led the decliners in the Nifty pack, falling 4 percent. The state-run lender reported a better-than-expected 30 percent jump in quarterly net profit, helped by lower provisions against non-performing assets, but its net interest income fell short of estimates.

Tata Steel also fell about 4 percent after reporting lower than expected earnings for the second quarter. ONGC lost 3 percent as the state-run oil explorer reported a 32 percent drop in quarterly profit, hit by a higher subsidy outgo. Among the other prominent decliners, Siemens, Ambuja Cement, BHEL, Sesa Goa and IDFC fell 2-3 percent.

Jet Airways, Dabur, Reliance Industries and Reliance Power fell 1-2 percent after activist-turned-politician Arvind Kejriwal alleged that several top Indian business groups and a Congress MP had stashed black money worth several hundred crores in HSBC's branch in Geneva.

Hero MotoCorp and Tata Motors retreated 1-2 percent after industry body SIAM said the automotive industry continues to face challenges in lifting sales.

Sun Pharmaceutical Industries slipped half a percent on reports it is looking forward to larger acquisitions in key markets as part of its expansion plans.

Jindal Steel and Power edged down 0.4 percent after posting a modest 2.5 percent rise in quarterly consolidated net profit, in line with estimates.
Alstom T&D India fell 1.2 percent on disappointing Q2 results.

Nestle India closed down 0.6 percent after the FMCG firm opened its first research and development (R&D) centre in India at the industrial township of Manesar in Haryana.

Reliance Communications fell over 2 percent after the telecom major posted a 60 percent drop in its second-quarter consolidated net profit. Rival Bharti Airtel lost about half a percent, while Idea Cellular rose 2.3 percent after the government allowed telecom firms to raise cheap loans from overseas markets to fund their one-time spectrum fee burden.

United Spirits ended up 0.9 percent, paring steep early gains after the liquor company reported a higher than expected 74 percent plunge in quarterly net profit. Indian Hotels Company edged up 0.2 percent after Bermuda-headquartered Orient-Express Hotels rejected a takeover bid by the Tata-owned company, saying the proposal "significantly undervalues" the company. Ashok Leyland soared 6.4 percent after its quarterly profit topped estimates.

by RTTNews Staff Writer

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