Bloomberg News

India’s Nifty Stock Futures Drop on Growth Concerns

July 12, 2012

Indian stocks declined the most in almost six weeks after Infosys Ltd. (INFO) posted lower-than-estimated profit and pared its annual sales forecast as customers curbed spending on technology amid a global slowdown.

Infosys, the nation’s second-largest software maker, sank as much as 10 percent, pacing losses among peers. Wipro Ltd. (WPRO), the third-biggest, slumped 4.1 percent and Tata Consultancy Services Ltd. (TCS), which reports earnings today, slid 2 percent. The three stocks have a combined 14 percent weighting in the benchmark BSE India Sensitive Index (SENSEX), or Sensex.

The 30-stock Sensex lost 1.6 percent to 17,218.47, according to preliminary closing prices at 3:30 p.m. in Mumbai, the most since June 1. Sales in the year to March may be at least $7.34 billion, Infosys said today, less than the $7.55 billion forecast in April. Profit rose to 22.9 billion rupees ($412 million) in the June quarter, missing the 24.2-billion rupee median of 31 analyst estimates compiled by Bloomberg.

Equities declined even as data showed India’s industrial output rebounded in May from a contraction after the central bank lowered interest rates earlier in the year. Production at factories, utilities and mines climbed 2.4 percent from a year earlier, after a revised 0.9 percent drop in April, government data showed today. The median of 35 estimates in a Bloomberg survey was for a 1.8 percent gain.

To contact the reporter on this story: Shikhar Balwani in Mumbai at sbalwani@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


Silicon Valley State of Mind
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus