Mumbai: Indian shares extended losses to 2% in midday trade on Wednesday on waning market momentum across Asia and as weak results from Reliance Industries and Hindustan Unilever hit sentiment.
At 11:55am, the 30-share BSE index was down 1.8% at 15,053.54 points, with 27 stocks declining, after falling to as much as 15,009.09. The 50-share NSE index was down 2% at 4,472.60.
Leading lenders ICICI Bank and State Bank of India, outsourcer Infosys Technologies and top realty firm DLF were among the major losers.
Motorcycle maker Hero Honda bucked the trend and rose 1.9% to Rs1,704.90 ahead of its quarterly results, scheduled to be released in the afternoon.
By 11:22am, the 30-share BSE index was down 0.3% at 15,287.66 points, with 18 stocks declining, after rising as much as 0.3% earlier. The 50-share NSE index was down 0.4% at 4,546.50.
“The market is in consolidation mode. Since the large caps have already run up quite a bit, they are taking a breather,” said Gajendra Nagpal, chief executive of Unicon Financial Intermediaries.
“There are no major events the market is looking forward to.”
The benchmark jumped 14% over the previous two weeks, as a spate of strong corporate results boosted hopes for a global economic recovery and lifted equity markets across the world.
But the Indian market has struggled this week after top listed firm Reliance Industries, which has the most weight in the main index, reported downbeat results.
Support from overseas markets is also weakening, as a profit drop at Canon Inc and loss at Hitachi Ltd of Japan underlined the damage wrought by the global crisis.
Some analysts are beginning to wonder if the rally that began in March on hopes the worst of the global crisis was over was in fact overdone.
Talk of fresh asset bubbles and a revival of inflation is raising market speculation that central banks and governments will soon have to start withdrawing the massive stimulus they have given to the world economy.
In India, private-sector ICICI Bank fell 0.3% to Rs737.20, while government-run State Bank of India dropped 1% to Rs1,663.85.
No. 2 outsourcer Infosys shed 0.4% to Rs1,987, while DLF eased 3.9% to Rs409.70.
Leading car maker Maruti Suzuki rose 1.1% to Rs1,403.50, while top utility vehicle maker Mahindra & Mahindra added 2.7% to Rs845.
In the broader market, gainers led losers 1,278 to 930 on relatively heavy volume of 165.9 million shares.
Most Asian shares were lower on Wednesday, with MSCI’s measure of Asian markets other than Japan falling 1.2% Japan’s Nikkei was up 0.3%.