(Bloomberg) -- Indian equities traded mixed, with key indexes heading toward their worst week in two months, amid investor disappointment over the budget and concern about the outlook for corporate earnings.

The benchmark S&P BSE Sensex was little changed at 38,784.99 as of 9:49 a.m. in Mumbai, with gaining and declining stocks almost equally matched. The NSE Nifty 50 Index was also little changed. Both measures were set for their biggest weekly losses since May 10 as the quarterly earnings season commenced.

Infosys Ltd. and IndusInd Bank Ltd. were due to report results later Friday, when inflation and factory output data were also scheduled. Tata Consultancy Services Ltd., India’s most valuable company, kicked off the earnings season with slower-than-expected quarterly sales growth.

Strategist View

  • “Given the economic slowdown we expect the earnings season to be tepid, which will lead to stock-specific volatility,” said Ajit Mishra, vice president of research at Religare Broking Ltd. Inflation and IIP data will provide some direction to investors, he said.
  • “We expect the markets to remain choppy in the near term in the backdrop of weak domestic cues,” Mishra said.

The Numbers

  • Ten of the 19 sector indexes compiled by BSE Ltd., led by a gauge of telecom stocks.
  • Nineteen of the 31 Sensex members and 31 of the 50 Nifty stocks declined.
  • Hero MotoCorp Ltd. was the top loser on the benchmark while Sun Pharmaceutical Industries Ltd. gained the most.

Analyst Notes/Market-Related Stories

  • India’s War on World’s Worst Bad-Debt Pile Stalled by Regulators

To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie, Kurt Schussler

©2019 Bloomberg L.P.