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Weak industrial earnings hit Sensex; recovery doubts persist

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Reuters MUMBAI
Last Updated : Aug 07 2015 | 3:22 PM IST

MUMBAI (Reuters) - The BSE Sensex and Nifty fell on Friday as weak results of industrial-goods makers raised fresh concerns over a much-anticipated recovery in India's investment cycle and earnings growth, while caution also prevailed ahead of U.S. jobs data due later in the day.

State-run Bharat Heavy Electricals' June-quarter profit declined 82.5 percent, while Larsen and Toubro posted a 37 percent slide in first-quarter profit.

L&T, which is viewed as a bellwether for the Indian economy, said in a statement earlier that an improved fiscal deficit and lower interest rates should eventually support business, but the investment climate remained subdued because of "global uncertainties and unhurried pace of reforms in India."

Investors are also keeping a sharp eye on monthly retail inflation and industrial output numbers due next week for further direction.

"Weak earnings by industrials' have marred the performance of an otherwise fine April-June earnings season," said Deven Choksey, managing director at K R Choksey Securities.

The BSE Sensex was down 0.3 percent and the broader Nifty fell 0.35 percent.

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Stocks were however headed for their second consecutive week of marginal gains amid a mixed earnings season.

The 30-share BSE Sensex was up 0.36 percent for the week, while the Nifty rose 0.3 percent.

State Bank of India and Coal India were down over 2 percent ahead of their earnings in coming week.

Bank of Baroda lost 2.6 percent, while HDFC Bank lost 0.6 percent.

(Reporting by Abhishek Vishnoi; Editing by Anand Basu)

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First Published: Aug 07 2015 | 3:10 PM IST

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