Indian Stocks Drop as Earnings Disappoint; SBI, Tata Steel Slump
Indian stocks had their biggest drop this month as earnings reports from companies including State Bank of India, the largest lender, and Tata Steel Ltd., the biggest producer of the alloy, disappointed investors.
The BSE India Sensitive Index (SENSEX), or Sensex, lost 0.9 percent to 18,678.28, according to preliminary closing prices at 3:30 p.m. in Mumbai. The 30-stock gauge fell 0.4 percent this week. State Bank sank 4 percent as a rise in bad loans outweighed better-than-estimated second-quarter earnings. Tata Steel sank 4 percent after unexpectedly reporting a loss and Oil & Natural Gas Corp. (ONGC) tumbled to a five-month low after profit declined the most in almost four years.
Out of the 29 Sensex companies that have reported earnings for the quarter ended September, 11, or 38 percent, have lagged behind analysts’ estimates. That compares with 40 percent of the index companies missing forecasts in the June quarter, data compiled by Bloomberg show.
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