Mumbai: Shares snapped a two-week losing streak but closed Friday 0.5% lower on weak world equities and as traders turned cautious on near-term outlook.
Top outsourcer Tata Consultancy Services rose as much as 6.7% to a record high of Rs1,049.90, after beating September-quarter earnings estimate, while rival Wipro shed as much as 5.4% as it lagged forecast.
The 30-share BSE index shed 0.47% or 94.72 points to 20,165.86, with 22 of its components closing in the red. It rose 0.2% on the week.
“The market may be forming an intermediate top,” said Sandip Sabharwal, CEO of portfolio management services at brokerage Prabhudas Lilladher, who did not rule out a small correction in near future.
“More or less, we have seen decent results. But, they are largely turning to be a non-event for the broader market this time, considering the sharp run up before the results.”
So far this year, foreign funds have invested a net $23.8 billion in Indian equities, driving the benchmark index up 15.5%.
Investors shovelled in another $5.8 billion into emerging market funds in the third week of October, with global emerging market equity funds seeing record inflows for the second time in three weeks, fund tracker EPFR said.
India’s benchmark index has outperformed MSCI’s world equities index and its emerging markets index which have gained 5.4% and 11.4% respectively.
“We continue to believe that we are entering another period of strong growth for tier 1 Indian IT companies,” Credit Suisse said in a note. It raised its target price on TCS to 1,175 rupees from 940 rupees and maintained an “outperform” rating.
TCS closed 5.7% higher after the No. 1 Indian software services company posted a near 30% rise in quarterly profit and said it expected strong demand for outsourcing. Infosys Technologies gained x%.
Wipro, the third-largest outsourcer, closed 4.5% lower after it missed forecast with a 10-percent rise in second-quarter profit.
Cigarette-to-hotel business ITC shed 1.8%, after rising 3.7% in the previous session.
Top-listed biotech firm Biocon closed 0.3% higher as its July-September net profit rose by a fifth from a year ago.
Declining shares outnumbered advancing ones in the ratio of 1.2:1, on a heavy volume of 561 million shares.
The 50-share NSE index dropped 0.6% to 6,066.05 points.
Elsewhere, the FTSEurofirst 300 was down 0.4% by 1023 GMT, while the MSCI’s measure of Asian markets other than Japan was barely changed.
Novartis India rose 2.9% to 665.20 rupees, after the pharmaceutical and crop protection products maker said late Thursday quarterly net profit rose 22%.
Indian Bank gained 0.5% to Rs302.80 as the state-run lender’s July-September net profit increased 12%.
Bajaj Corp dropped 4.2% to Rs680.05, as the light hair oil maker posted a 19% fall in as the light hair oil maker posted a 19% fall in September-quarter net profit.
Geometric climbed 1.8% to Rs69.55, as the company, which provides products, software and engineering services, posted a 35% jump in quarterly net profit boosted by higher engineering services revenue.