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Published on 19/07/2019 10:51:01 AM | Source: Reuters

Nifty, Sensex fail to hold gains, auto stocks drag

Posted in Top Stories| #Sensex #Stock Market #NSE #BSE #Nifty

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By Chris Thomas

Indian shares gave up early gains to trade lower on Friday, with auto and financial stocks taking the brunt of the losses, while Yes Bank Ltd extended losses after posting weak quarterly results.

The broader NSE Nifty was down 0.6% at 11,527.1 as of 0445 GMT, while the benchmark BSE Sensex was 0.59% lower at 38660.08. The indexes are on course for a second straight weekly loss.

The first set of Indian corporate results also failed to impress investors. IT heavyweight Tata Consultancy Services Ltd, which kicked off the results season last week, reported lower margins and flagged stress in global capital markets.

"We've not had any fresh positive triggers to allow markets to shake off the general cloud of negativity," said Anand James, chief market strategist at Geojit Financial Services.

    "We are coming out of the budget's overhang and earnings so far have not been enough to sponge it off ... the prevailing sentiment has been negative."

The Mumbai market hopped off a rally in broader Asia that was spurred by a top U.S. Federal Reserve official boosting expectations of an interest rate cut later this month.

Oil prices rebounded after four days of losses as fresh flare-ups between the U.S. Navy and Iran raised tensions in the Middle East.

Auto maker Mahindra and Mahindra Ltd was among the biggest losers in the market, sliding 2.3% to its lowest since Dec. 2016, while Bajaj Auto Ltd and Maruti Suzuki India Ltd shed 1.6% each.

This drove the Nifty Auto index 1.6% lower to its lowest since March 2016.

Private-sector lender Yes Bank Ltd extended losses for a third day. The stock dropped 2.9% in the current session, after plunging 12.8% in the previous session following disappointing results.

ACC Ltd jumped 5.1%, its sharpest intraday rise since March, after quarterly profit climbed 38.6% and the cement maker flagged better demand and growth going forward.

Rival UltraTech Cement Ltd was the top percentage gainer on the NSE Nifty, advancing 2.4% to a six-week high.

Shares of conglomerate Reliance Industries Ltd were a touch lower ahead of the company's quarterly results, while Indigo owner Interglobe Aviation Ltd rose 1.9%.

(Reporting by Chris Thomas and Chandini Monnappa in Bengaluru; editing by Gopakumar Warrier)