Mumbai: India’s main indexes edged lower in the first trading session of the month as auto makers such as Tata Motors fell because of disappointment over their April sales, while banks suffered from profit-taking after recent gains.
Autos have been among the leading gainers in April, with the BSE sub-index up 5.04% in April on hopes that sales will improve after an interest rate cut was seen bringing down the cost of vehicle financing loans.
However, disappointment over April sales out over the past two days have led some investors to pare their bullish bets, while recent talk of a hike in fuel prices are also sparking worries about sales of petrol vehicles.
The benchmark 30-share BSE index fell 0.1% to 17,301.91 points, while the 50-share NSE index ended down 0.17% at 5,239.15 points.
Markets were closed on Tuesday because of a public holiday.
India’s main indexes have fallen 6% since hitting their 2012 peak on 22 February, because of rising worries about the country’s economic and fiscal outlook, and lingering uncertainty about the government’s proposed taxation for foreign investors.
However, there have been some winners. Shares of Tata Motors, hit an all time high on 20 April, after RBI cut interest rates on its mid-April meeting.
Tata Motors doused some of that optimism after saying on Tuesday sales fell 7% last month, sending shares down 3.81% on Wednesday.
India’s top car maker Maruti Suzuki fell 2.8% on similar disappointment about its sales.
Banks, which have gained over the past several sessions following some good earnings results, reversed course on Wednesday.
Axis Bank shares fell 0.33% after rising 1.9% over the previous 3 sessions.
Among gainers, software services exporter Tata Consultancy Services rose 1.66% after the rupee came close to notching its weakest level against the dollar since 5 January, raising optimism about its margins.
India’s largest consumer goods company Hindustan Unilever Ltd advanced 1.77% after reporting on Tuesday a better-than-expected 21% rise in quarterly profit.
Mobile phone carrier Bharti Airtel rose 2.4% after investors chose to focus on improving EBITDA margins despite missing estimates with their fiscal fourth-quarter results.
