Sensex down 62 points on weak industrial earnings; recovery doubts persist

Our Bureau |Agencies | | Updated on: Dec 06, 2021


The Sensex and the Nifty ended the session marginally in the red as weak results of industrial goods makers raised fresh concerns over a much-anticipated recovery in the country’s investment cycle and earnings growth, while caution also prevailed ahead of US jobs data due later in the day.

The 30-share BSE index Sensex ended the session down by 61.74 points or 0.22 per cent at 28,236.39 and the 50-share NSE index Nifty ended down by 24.05 points or 0.28 per cent at 8,564.60.

Among BSE sectoral indices, oil & gas index was the star-performer and was up 1.97 per cent, followed by consumer durables 0.46 per cent and auto 0.07 per cent. On the other hand, power index fell the most by 1.47 per cent, followed by metal 0.92 per cent, banking 0.74 per cent and capital goods 0.49 per cent.

Top five Sensex gainers were ONGC (+4.42%), Tata Motors (+2.52), VEDL (+2.01%), Hindalco (+0.92%) and Sun Pharma (+0.59%), while the major losers were BHEL (-5.81%), Coal India (-3.61%), SBIN (-2.38%), Bajaj Auto (-1.46%) and NTPC (-1.33%).

State Bank of India and Coal India were down over ahead of their earnings in coming week.

State-run Bharat Heavy Electricals’ June-quarter profit declined 82.5 per cent, while Larsen and Toubro posted a 37 per cent slide in first-quarter profit.

L&T, which is viewed as a bellwether for the Indian economy, said in a statement earlier that an improved fiscal deficit and lower interest rates should eventually support business, but the investment climate remained subdued because of “global uncertainties and unhurried pace of reforms in India’’.

Investors are also keeping a sharp eye on monthly retail inflation and industrial output numbers due next week for further direction.

“Weak earnings by industrials have marred the performance of an otherwise fine April-June earnings season,’’ said Deven Choksey, managing director at K R Choksey Securities.

Global markets

European shares fell in early deals on Friday, weighed down by Germany’s top share index after a surprising fall in industrial output.

Germany’s DAX fell 0.5 per cent, underperforming a 0.4 per cent drop on the broader FTSEurofirst 300, after German industrial output declined and exports fell by more than expected, raising questions about the strength of the recovery in Europe’s largest economy.

Most Asian shares slipped on Friday, on track for a third consecutive weekly loss, and the dollar rose as caution mounted ahead of US jobs data that could spur the Federal Reserve to raise interest rates in September.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent, down about 1.5 per cent for the week, weighed down by weak US equities in the wake of disappointing earnings results.

Japan’s Nikkei stock index was up 0.2 per cent, erasing earlier losses from investors taking profits after the Bank of Japan kept its stimulus programme unchanged.

Published on August 07, 2015
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