Now, quarter worries come to haunt D Street Equity benchmarks ended a percentage lower on Thursday, as concerns over next month's second quarter earnings weighed down investor sentiment. Such worries were in addition to the uncertainty over the implementation of the $700-billion US bailout for its financial sector, which is perceived by investors as the key to cushion a severe global economic slowdown.
Fund managers said there is anxiety among investors over the quality of earnings that Indian companies would report in the July-September or second quarter, as the period saw a sharp jump in raw material costs and higher interest rates. "There is lack of conviction whether the second quarter earnings would spring any positive surprises. So, it is a wait and watch situation," said Birla SunLife Mutual Fund CIO A Balasubramanian. On Thursday, BSE's 30-share Sensex closed at 13,547.18, down 145.34 points or 1.06%. NSE 50-share Nifty ended at 4110.55, down 50.7 points or 1.22%, after touching the day's low of 4077.50. Trading on Thursday was choppy, ahead of the October series expiry of derivatives contracts the same day, with investors squaring off positions in the futures and options segment and rolling them over to the November series. Bears had a firmer grip on the broader market, with loses outnumbering gainers 1688: 899 on the BSE. Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Most analysts do not expect any major deviation in companies' sales growth this quarter from their estimates, but do not rule out such a situation in profits. Investors are waiting to see the impact of these factors, including likely losses from derivatives, on the companies' profits and margins. "The market continues to bear downside risks in the coming months. Instead of dealing with high inflation, rising rates and falling global risk appetite, the market now has to deal with slowing earnings growth, rich valuations and the likelihood of uncertain politics in the coming months," said Morgan Stanley's strategists in a research note. Market participants said investors are unlikely to take any cues from the latest inflation figures, which remained unchanged from the previous week at 12.14%, but below analysts forecasts of 12.23%. It is felt that unless the inflation dips below double digits, investors would not pay much attention to the data. Some analysts feel a liberal rescue package by the US would be important to calm markets over the world, as the crisis in its financial markets threatens to spread to the rest of the economy. Depression in the US economy, the world's largest, is expected to derail the global economic growth. Mirroring such concerns, most Asian markets ended weak on Thursday. Back home, foreign institutions extended their selling spree in Indian equities on Thursday, dumping shares worth Rs1,050 crore. -- Visit site at – http://investorline.co.in/ Investor Forums- http://forums.investorline.co.in/ Iwebs Open Source Web Publishing Platform - http://webs.investorline.co.in/iwebs/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
