BENGALURU: Indian shares extended losses for the third session in a row on Wednesday, dragged by IT stocks and the lack of any fresh triggers to offset the downbeat sentiment after a lacklustre start to the earnings season.
The Nifty 50 closed down 0.23% at 17.618.75, while the S&P BSE Sensex closed 0.27% lower to 59,567.80.
Seven of the 13 major sectoral indexes declined. The heavyweight financials stocks were little changed, but IT stocks fell over 1.75%.
HCLTech Ltd and Infosys Ltd lost over 2% each and were among the top Nifty losers. HCLTech will report results on Thursday, following dire reports from market leaders Infosys and TCS Ltd last week.
“Investors have been nervous after the dismal fourth-quarter performance of IT companies which have reported their numbers so far,” said Prashanth Tapse, senior vice president (research) at Mehta Equities.
Since TCS’s results last Wednesday, the Nifty IT index has tumbled nearly 8%, while the benchmark Nifty 50 has lost just over 1%.
Financials offset IT, pharma gains, drag Indian shares down
“The (benchmark) index has got an important near-term support at 17,500-17,550 and resistance at 17,800 levels,” said Vaishali Parekh, vice president for technical research at Prabhudas Lilladher.
The markets are likely to stay choppy, with earnings the only major trigger until the U.S. Federal Reserve’s interest rate decision on May 3, two analysts said.
Among individual stocks, Piramal Pharma Ltd climbed nearly 8% after the U.S. drug regulator closed an inspection of its Sellersville manufacturing facility.
TVS Motor Co Ltd rose over 2% to a six-month high after CLSA said the two-wheeler maker’s margin would expand in the near term and exports recover over the next two fiscal years.
ICICI Lombard lost nearly 5% after several analysts cut their profit estimates on the insurer after its quarterly report.
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