Indian stocks dropped as company earnings missed estimates and the nation’s factory output fell in June for the third time in four months, adding to signs of faltering growth in Asia’s third-largest economy.
Bharti Airtel Ltd. (BHARTI), India’s largest mobile operator, sank to near a six-year low as brokerages including Goldman Sachs Group Inc. downgraded the stock after lower-than-estimated earnings yesterday. Tata Motors Ltd. (TTMT), the owner of luxury car brands Jaguar and Land Rover, lost 1.4 percent after net income missed analysts’ estimates. State Bank of India (SBIN) plunged 3.7 percent ahead of results tomorrow.
The BSE India Sensitive Index (SENSEX), or Sensex, slid 0.3 percent to 17,556.73 at 3:03 p.m. in Mumbai. Industrial output narrowed 1.8 percent from a year ago after a revised 2.5 percent rise in May, the government said today. The median of 27 estimates in a Bloomberg News survey was for a 0.4 percent increase.
Bharti plummeted 7.3 percent to 254.30 rupees, headed for the lowest close since Oct. 2006. Goldman Sachs and Standard Chartered Plc cut their ratings on expectation the company will have to boost promotion costs as it seeks to grow market share in India and Africa. New Delhi-based Bharti’s shares sank 6.6 percent yesterday after earnings missed analysts’ estimates.
Tata Motors lost 1.4 percent to 238.10 rupees, its first decline in four days. Net income rose 12.3 percent to 22.45 billion rupees ($407 million) in the June quarter, it said in a statement today. The median estimate of 35 analysts compiled by Bloomberg was 27.3 billion rupees. Jaguar Land Rover posted profit to 236 million pounds ($369 million), lagging behind the 302 million-pound median of 18 analysts’ estimates compiled by Bloomberg.
State Bank tumbled 3.7 percent to 1,984.80 rupees. India’s largest lender is scheduled to report quarterly results tomorrow.
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