Mumbai: Indian shares extended their losses to 1% on Friday afternoon as investors booked profits in banking stocks, erasing early gains made on better-than-expected quarterly results from Infosys Technologies.
At 2:09pm, the 30-share BSE index was down 1.02% at 16,671.18 points, with 25 components declining. The 50-share NSE Index was down 0.83% at 4,961.05.
State Bank of India and ICICI Bank, the top two lenders in the country, fell more than 1% after the sector index had climbed over 18% since the start of September.
Shares in Infosys Technologies turned negative after earlier rising as much as 3.7% after the firm reported a rise in quarterly profit just above market expectations and raised it full-year forecast.
At 12:42pm, the shares were down 0.2% at Rs2,206.70 in a Mumbai market down 0.7%. Infosys shares started 2% higher and rose to a high of Rs2,293.65.
“Investors are cautious as valuations seem stretched,” said Gajendra Nagpal, founder and CEO of Unicon Financial. “Sectoral rotation is taking place.”
He said there was money waiting on the sidelines but investors were wary ahead of the results.
State Bank of India was down 2.8% at Rs2,056.10 while private lender ICICI Bank fell 1.6% to Rs907.55.
Leading vehicle maker Tata Motors shed 5.1% to Rs557.60 after a source said the company was raising about $750 million through global depositary receipts and convertible bonds.
Top mobile operator Bharti Airtel climbed 3.7% and rival Reliance Communications gained 2.7% after slumping more than 20% over the last four sessions on profitability concerns.
In the broader market, gainers outpaced losers in the ratio of 1.2:1 on relatively lower volume of 191 million shares.