(Bloomberg) -- Financial companies dragged India stocks lower as investors remained unimpressed by the earnings so far and on concerns, weak factory output will remain a drag on economic growth. Stocks across Asia were trading in the red.
The S&P BSE Sensex fell 0.4 percent to 35,859.93 at 9:45 a.m. in Mumbai. The NSE Nifty 50 Index declined 0.5 percent.
Of the three Nifty 50 companies that have announced results so far, two -- Tata Consultancy Services Ltd. and Infosys Ltd. -- have missed analysts’ expectations. India’s industrial production rose at the slowest pace since June 2017 as manufacturing output fell, adding to concerns of slower economic expansion in the second half of the year.
- Sixteen of 19 sub-indexes compiled by BSE Ltd. declined led by measure of metal and capital goods companies
- Housing Development Finance Corp. and Reliance Industries Ltd. were the biggest drags on the benchmark index
- Infosys Ltd. was the top performer on Sensex after its board approved a buyback of shares; company has also raised its sales forecast citing a “healthy pipeline”
- “The industrial production data shows extreme weakness in most segments of the economy,” said A. K. Prabhakar, head of research at IDBI Capital Market Services Ltd. “Earnings too so far haven’t provided any positive surprises”
- “Liquidity concerns remain and there are even signs of slowing incremental cash inflow into mutual funds,” he said
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