BSE Sensex falls 16 pts, Infosys share price up ahead of earnings

Jan 09 2014, 18:18 IST
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Trading in a narrow 125-point zone, BSE Sensex index rose to a high of 20,778.13 and a low of 20,652.69 during the session. (Reuters) Trading in a narrow 125-point zone, BSE Sensex index rose to a high of 20,778.13 and a low of 20,652.69 during the session. (Reuters)
SummaryBSE Sensex records sixth decline in seven sessions, bust Infosys share price buoyant.

after RBI relaxes norms

* Jubliant Foodworks falls; RBI limits foreign investment

Indian shares record sixth decline in seven sessions of 2014

(Reuters) - Indian shares fell slightly on Thursday, recording their sixth decline in seven sessions so far this year, as blue-chips such as Larsen & Toubro fell on anxiety ahead of the quarterly earnings season and inflation data.

Caution was seen ahead of the start of the corporate earnings reporting season, with Infosys Ltd announcing its results on Friday.

India is also due to post wholesale and consumer price data on Tuesday, which will help determine whether the Reserve Bank of India will resume raising interest rates after tightening monetary policy by a total of 50 basis points over September and October.

However, India's inflation rate will probably ease in December to 7.00 percent from the 14-month high of 7.52 percent in November helped by waning food prices, a Reuters poll of 22 economists showed.

Falls also tracked lower global shares ahead of policy meetings at the European Central Bank and Bank of England on Thursday and the U.S. jobs report due on Friday.

"We remain bullish on Indian shares. December quarter would mark the second straight quarter of recovery in earnings for India Inc," said Abhay Laijawala, managing director and head of research at Deutsche Equities India Pvt. Ltd.

The benchmark BSE index fell 0.08 percent, or 16.01 points, to end at 20,713.37, marking a total fall of 2.2 percent for 2014.

The broader NSE index lost 0.1 percent, or 6.25 points, to end at 6,168.35.

Among blue-chips, Larsen & Toubro Ltd fell 2.7 percent, while Housing Development Finance Corporation ended 0.3 percent lower.

Caution ahead of key inflation data next week also hit bank stocks. Axis Bank Ltd fell 2.2 percent while State Bank of India lost 1.1 percent.

Among other rate-sensitive stocks, Mahindra and Mahindra Ltd fell 1.6 percent while Maruti Suzuki India Ltd lost 1.4 percent.

Jubilant Foodworks Ltd, which operates the Domino's Pizza franchise in India, fell 3 percent after the central bank on Wednesday said aggregate net purchases of equity shares

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