MUMBAI (Reuters) - The BSE Sensex and Nifty are headed for their third straight loss dragged by disappointing earnings numbers posted by bellwethers Tata Motors
Tata Motors' shares fell more than 5 percent on Wednesday after a surprise drop in its bottomline, hit by weak demand for luxury Jaguars and Range Rovers in China, where automakers are under pressure to cut prices.
Tech Mahindra shares hit an over-seven-month low after the company posted a drop in quarterly profit on lower margins due to wage increases and currency fluctuations.
"Earnings performance is likely to drive sentiment in the near term, as the market awaits policy directions from the central bank," Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance Company, said.
Weak earnings growth posted by some Indian companies have put investors on guard, worried that a rebound in growth can take longer than expected due to little change in bank lending.
The Reserve Bank of India has cut rates twice this year but has remained cautious against excessive easing, leaving rates unchanged when it held its last policy meeting in April.
However, the RBI is widely expected to cut its benchmark interest rate by another 25 basis points when it meets early next week.
The Nifty was down 0.24 percent while the Sensex eased 0.14 percent.
Among the gainers, lenders including Punjab National Bank
(Reporting by Himank Sharma; Editing by Sunil Nair)
