BENGALURU, July 14 (Reuters) – Indian shares fell on Wednesday as losses in banking stocks outweighed gains in information technology (IT) companies, while investors awaited IT major Infosys’ results due later in the day.
“Markets are down mainly on the back of profit booking today because investors are unable to find any strong triggers considering results season is still at its nascent stage,” said Siddharth Sedani, head of equity advisory at Anand Rathi Financial Services in Mumbai.
“The second largest IT company (Infosys) could provide a fresh positive trigger.”
Sedani also said markets were likely to take positive cues from the pick up in monsoons, which helps sectors such as agriculture and agrochemicals.
India’s monsoon has splashed back to life after a lull, lifting the threat of a slowdown in planting crucial summer crops. read more
Sentiment was also dampened by a fall in Asian shares as global markets were spooked after the biggest jump in U.S. inflation in 13 years, which stoked concerns about the Federal Reserve exiting pandemic-era stimulus earlier than previously thought.
Shares of IT services company MindTree (MINT.NS) hit record levels after it reported a jump in consolidated net profit for the June quarter. Larger rival Infosys (INFY.NS) was up 0.8%, ahead of first-quarter results due later in the day, with analysts expecting a rise in profit.
On Tuesday, S&P Global Ratings kept India’s sovereign rating unchanged at the lowest investment grade of ‘BBB-‘, and said recovery from the current economic slowdown depended on the government’s ability to bring in reforms that spur investment and create jobs. read more
Reporting by Shivani Singh in Bengaluru; editing by Vinay Dwivedi
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