(Updates at 10:07 a.m. IST)
Jan 9 (Reuters) – India’s benchmark indexes fell on Thursday, as worries over a likely moderation in corporate earnings for the December quarter and concerns over fewer rate cuts in the U.S. weighed on sentiment.
The Nifty 50 fell 0.2% to 23,645.9 points as of 10:27 a.m. IST, while the BSE Sensex was down 0.15% to 78,030.36.
The broader, more domestically-focussed smallcaps and midcaps traded flat.
India’s blue-chip indexes have lost about 1.5% so far this week, while smallcaps and midcaps are down 3.5% and 2.7%, respectively, on worries over earnings and sustained foreign outflows.
Indian companies have started reporting earnings and IT major Tata Consultancy Services is due to release its results later in the day.
Recent sales updates from companies including FMCG giant Dabur India and two-wheeler maker Hero MotoCorp have not inspired confidence that earnings of Nifty 50 firms will improve from the previous quarter, which was the worst in four years.
“Worries of a continuation of earnings moderation in the December quarter and signals of fewer rate cuts in the U.S. in 2025 as well as uncertainty over U.S. policy under (U.S. President-elect Donald) Trump are all keeping domestic equities on their toes,” said Sanjeev Hota, vice president and head of research at Mirae Asset Sharekhan.
Besides the earnings and Trump’s policies, India’s federal budget due on Feb. 1 will also be crucial for the Indian markets, Hota said.
Eleven of the 13 major sectors declined on the day.
High-weightage financials <.NIFTYFIN shed 0.5% with the heaviest stock on India’s benchmarks, HDFC Bank, falling 1.1%.
Gold loan financier Manappuram Finance jumped 7% after India’s central bank lifted curbs on its unit.
Two-wheeler maker Bajaj Auto gained 1.5% after CLSA upgraded the stock to “outperform” from “underperform”, citing attractive valuations and an improving electric two-wheeler franchise.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy, Sonia Cheema and Mrigank Dhaniwala)
