Earnings blues dent shares

STOCK REPORT

Key indices ended down 0.6 per cent today, erasing early gains, as investors booked profits. Shares were up nearly 1 per cent in early trades on value buying after they fell nearly 2 per cent in previous session.

Today, sentiment was hit on worries that earnings from key companies, which will start trickling in from Thursday, may not be able to match market expectations, dealers said.

"Investors booked profits at every rise as there are doubts that Infosys may not be able to deliver according to expectations," a dealer said.

Finance Minister P Chidambaram's comments that India's headline inflation was a cause for worry also dampened the mood. India's inflation, based on the wholesale price index, rose to a nine-week high of 5.48 per cent in week to December 23. The Bombay Stock Exchange's 30-share Sensex ended at 13566.33, down 85.82 points or 0.6 per cent from Monday. Intraday it moved between 13493.38 and 13748.42.

The National Stock Exchange's 50-share Nifty ended at 3911.40, down 22.00 points or 0.56 per cent. Intraday it moved between 3890.75 and 3963.75. Turnover on both the exchanges was roughly Rs 14,000 crore, as against Rs 11,00 crore on Monday.

CNX Midcap ended down 0.8 per cent. S&P CNX 500 ended down 0.5 per cent.

On BSE, declines outnumbered advances, 1.1:1. Cairn India debuted at Rs 140 on NSE, 12.5 per cent below its initial public offering price of Rs 160. Intraday the share fell to Rs 133 on concern over high valuations, analysts said.

The company has so far made 18 oil and gas discoveries. GAIL India, up 4 per cent at Rs 285, was the top Nifty gainer after the company on Monday said it would complete the Dahej-Uran pipeline by March 31.