Mumbai: Markets shares were trading flat on Wednesday as worries over quarterly earnings and a likely rate increase by the central bank next week erased early gains that were driven by firm Asian peers.
Wipro , India’s No. 3 software services exporter, fell more than 3% after the company said it saw headwinds to its profit margins this quarter and revenue growth may lag industry rates this year.
By 11:41am, the 30-share BSE index was up 0.06% at 18,666.15 points, after rising as much as 0.6% and then briefly turning negative. Only 14 of its components were trading higher.
“The next cue will be RBI’s decision on July 26 or if there are better-than-expected results from a major company,” said Neeraj Dewan, director at Quantum Securities.
“We are not likely to see too much movement before that.”
The Reserve Bank of India (RBI) is expected to raise its key policy rate by a further 25 basis points next week after inflation quickened in June and may hike once more by the end of the year, a new Reuters poll showed on Wednesday.
India’s wholesale price inflation accelerated in June to an annual 9.44% from 9.06% in May, driven by higher prices for manufactured goods and fuel, even as the economy showed signs of cooling.
Concerns about uncertain outlook for the outsourcing sector, also dragged down shares in Wipro’s larger rivals Tata Consultancy Services and Infosys by nearly 0.5% each.
State-run power equipment maker Bharat Heavy Electricals fell 0.5% to 1,970 rupees after the company shortlisted four banks to manage its follow-on public offer , indicating the share sale was on track for the second half of this fiscal year.
Top engineering conglomerate Larsen & Toubro rose 0.6% after it won a $272 million order from Qatar.
In the broader market, 727 advances were ahead of 643 declines moderate volume of 251 million shares.
The 50-share NSE Nifty index was up 0.05% at 5,615.80 points.
The MSCI’s measure of Asian markets other than Japan was up 1.34%, while Japan’s Nikkei rose 1.2%.
Power equipment maker Crompton Greaves tumbled 13.7% to Rs 179.85, after its chief executive said the company is seeing a delay in new orders in the domestic market.
Cadila Healthcare fell 7.9% to Rs 878.05 after Bank Of America-Merrill Lynch downgraded the stock to ‘underperform´ from ‘buy´ and cut its price target, citing sluggish sales growth in the domestic and U.S. markets.