Indian Stocks Little Changed as SBI Retreats, Vedanta Climbs

Updated on
  • Shanghai Composite Index retreats from two-month high
  • Profit at 6 of 8 Sensex firms that have reported top forecasts

India’s benchmark stock index declined for a second day in volatile trading as HDFC Bank Ltd. reported earnings that missed estimates and Chinese shares tumbled from an eight-week high.

State Bank of India and ICICI Bank Ltd., the biggest lenders, lost more than 1 percent each. HDFC Bank, the nation’s most valuable, was little changed after net income missed estimates for a fifth time in six quarters. Reliance Industries Ltd., owner of the world’s largest refining complex, reversed an intraday advance of 1.9 percent. Bharti Airtel Ltd. rallied to a two-month high after the nation’s largest cell-phone operator received more than $1.7 billion from tower sales in Africa.

The S&P BSE Sensex fell less than 0.1 percent to 27,287.66 at the close, after swinging between gains and losses at least 10 times. The gauge completed a third weekly gain on Friday as overseas investors returned to emerging markets amid signals the U.S. Federal Reserve will delay increasing interest rates until 2016. So far, five of the seven Sensex firms that have reported September-quarter results have matched or beaten estimates. The Shanghai Stock Exchange Composite Index plunged 3.1 percent, the most in a month.

“The plunge in Chinese stocks prompted investors to take some money off the table,” Suniil Pachisia, vice president at Pratibhuti Viniyog Ltd., said in a phone interview. “No one wants to keep their positions open” before Thursday’s public holiday, he said.

Earnings Scorecard

Hero MotoCorp reported second-quarter profit of 7.7 billion rupees ($118.4 million) after markets closed on Tuesday, beating the 7.2 billion-rupee median estimate of analysts in a Bloomberg survey. The shares pared gain to 0.6 percent, after rising 2.4 percent earlier.

Bajaj Auto Ltd., the second-largest motorcycle maker, soared 3.3 percent after its profit beat estimates. Profit at Wipro Ltd., the third-biggest software maker, reported earnings climbed 7.7 percent to 22.4 billion rupees, matching the 22.3 billion rupees forecast in a Bloomberg survey. The stock rose 1.1 percent. Results came after trading ended.

HDFC Bank said second quarter net income increased 21 percent to 28.7 billion rupees, missing the 29 billion rupees estimated by analysts. The shares have risen 15 percent this year. State Bank of India plunged 2 percent, while ICICI Bank fell 1.2 percent in a fourth day of decline.

Reliance Industries fell 0.2 percent. Bharti Airtel jumped 2.7 percent. Vedanta’s 3.8 percent rally today pared this year’s loss to 51 percent. Reliance Capital Ltd. rallied 3.3 percent to its highest level since May 5 after agreeing to acquire Goldman Sachs Asset Management’s onshore business in India for 2.43 billion rupees in cash.

The Sensex has fallen 0.8 percent this year and trades at 15.8 times projected 12-month profits. The MSCI Emerging Markets Index is valued at a multiple of 11.3.

Foreigners bought a net $97 million of shares on Tuesday, taking this year’s inflows to $4.4 billion, data compiled by Bloomberg show.