Indian shares fall as earnings weigh on IT, consumer names
Investors remained on watch for trade talks with the United States amid an imminent free-trade agreement with the UK.
The Nifty 50 (.NSEI), opens new tab settled 0.63% lower at 25,062.1 points while the BSE Sensex (.BSESN), opens new tab lost 0.66% to 82,184.17.
Eleven of the 16 major sectors fell, with IT (.NIFTYIT), opens new tab and consumer shares (.NIFTYFMCG), opens new tab leading the losses with 2.2% and 1.1% declines, respectively.
India's broader smallcaps (.NIFSMCP100), opens new tab and midcaps (.NIFMDCP100), opens new tab lost 1.1% and 0.6%.
"Domestic factors drove the market on the day," Aamar Deo Singh, senior vice president at Angel One, said.
"We are seeing some profit booking and investors are also looking at corporate earnings. Earnings remain key for Indian market to arrest their underperformance to global equities."
India's benchmark indexes have fallen about 1.8% this month against a 4% jump in MSCI's broadest index for Asia-Pacific stocks outside Japan (.MIAPJ0000PUS), opens new tab.
On the day, among IT names, Coforge, opens new tab(COFO.NS), opens new tab and Persistent Systems, opens new tab(PERS.NS), opens new tab fell 9.4% and 7.7%, while Infosys (INFY.NS), opens new tab shed 1.4% after their results, as investors worried about demand for India's $283 billion IT sector.
Consumer giant Nestle India (NEST.NS), opens new tab dropped 5.3%, dragging its peers lower as its profit declined on raw material costs and expenses tied to its manufacturing expansion.
Heavyweight financials (.NIFTYFIN), opens new tab fell 0.6% as traders took profits following a 2.5% jump over the last three sessions.
Indian Energy Exchange (IIAN.NS), opens new tab slumped nearly 30% on concerns of market share loss from a planned overhaul of electricity pricing rules.
Tata-owned retailer Trent lost 3.8% after Goldman Sachs downgraded the stock to "neutral" from "buy".
Dr Reddy's (REDY.NS), opens new tab gained 1.5%, boosted by the drug maker's plan to launch a generic obesity drug in 87 countries next year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
24 minutes ago
- Reuters
India-US spat over trade and oil threatens wider fallout
NEW DELHI/WASHINGTON, Aug 6 (Reuters) - U.S. President Donald Trump's tirade against India over trade and Russian oil purchases threatens to undo two decades of diplomatic progress, analysts and officials say, and could derail other areas of cooperation as domestic political pressures drive both sides to harden their stances. India's opposition parties and the general public have urged Prime Minister Narendra Modi to stand up to what they call bullying by Trump, who on Wednesday signed an executive order subjecting Indian imports to an additional 25% in duties on top of an existing 25% tariff, due to its big purchases of Russian oil. While India has emerged in recent years as a key partner for Washington in its strategic rivalry with China, its large U.S. trade surplus and close relations with Russia - which Trump is seeking to pressure into agreeing to a peace agreement with Ukraine - have made it a prime target in the Republican president's global tariff offensive. Trump's taunt that India could buy oil from arch enemy Pakistan has also not gone down well in New Delhi, said two Indian government sources. India has also rejected repeated claims by Trump that he used trade as a lever to end a recent military conflict between India and Pakistan. In an unusually sharp statement this week, India accused the U.S. of double standards in singling it out for Russian oil imports while continuing to buy Russian uranium hexafluoride, palladium and fertiliser. On Wednesday, it called the tariffs "unfair, unjustified and unreasonable," vowing to "take all actions necessary to protect its national interests." But New Delhi knows that any further escalation will hurt it in matters beyond trade, said the sources. Unlike China, India does not have leverage like supplies of rare earths to force Trump's hand to improve the terms of any trade deal, they said. In recent years, successive U.S. administrations, including Trump's first, carefully cultivated relations with India with an eye on it as a vital partner in long-term efforts to counter the growing might of China. But analysts say Trump's recent moves have plunged the relationship back to possibly its worst phase since the U.S. imposed sanctions on India for nuclear tests in 1998. "India is now in a trap: because of Trump's pressure, Modi will reduce India's oil purchases from Russia, but he cannot publicly admit to doing so for fear of looking like he's surrendering to Trump's blackmail," said Ashley Tellis at Washington's Carnegie Endowment for International Peace. "We could be heading into a needless crisis that unravels a quarter century of hard-won gains with India." Indian state refiners have in recent days stopped buying Russian oil as discounts narrowed and pressure from Trump rose, Reuters has reported. A more pressing challenge for India, analysts say, is the stark divergence between its priorities and Trump's political base on key issues such as work visas for tech professionals and offshoring of services. India has long been a major beneficiary of U.S. work visa programs and the outsourcing of software and business services, a sore point for Americans who have lost jobs to cheaper workers in India. Relations with India risk becoming a "football in American domestic politics," warned Evan Feigenbaum, a former senior State Department official under the Republican presidency of George W. Bush. "Issues that directly touch India are among the most partisan and explosive in Washington, including immigration and deportation, H1B visas for tech workers, offshoring and overseas manufacturing by U.S. companies, and technology sharing and co-innovation with foreigners," he wrote in a LinkedIn post. Since a 2008 deal to cooperate on civilian nuclear technology, the two countries have deepened intelligence sharing and defence cooperation and expanded interactions with Australia and Japan through the Quad grouping aimed at containing China's dominance in the Indo-Pacific. But fractures have appeared, despite Modi's rapport with Trump in his first term and then former President Joe Biden. Images in February of Indians deported by the U.S. on military planes, their hands and legs shackled, horrified the country just days before Modi went to see Trump seeking to stave off high tariffs. The relationship was also seriously tested in late 2023 when the U.S. said it had foiled a plot with Indian links to kill a Sikh separatist leader on U.S. soil. New Delhi has denied any official connection to the plot. "The Modi regime's credibility in the U.S. has gone down," said Sukh Deo Muni, a former Indian diplomat and a professor emeritus at New Delhi's Jawaharlal Nehru University. "And maybe there are people who think that India or Modi had to be brought back on track, if not taught a lesson. And if that trend continues, I'm quite worried that the challenge is quite powerful and strong for India to navigate." One Indian government source said India needs to gradually repair ties with the U.S. while engaging more with other nations that have faced the brunt of Trump tariffs and aid cuts, including the African Union and the BRICS bloc that includes Brazil, Russia, China and South Africa. India is already making some moves with Russia and China. Russian President Vladimir Putin is expected to visit New Delhi this year and on Tuesday, Russia said the two countries had discussed further strengthening defence cooperation "in the form of a particularly privileged strategic partnership." India has also boosted engagement with China, a change after years of tensions following a deadly border clash in 2020. Modi is set to visit China soon for the first time since 2018. "Russia will attempt to exploit the rift between the U.S. and India by proposing the restoration of the Russia-India-China trilateral and new projects in defence," said analyst Aleksei Zakharov at the Observer Research Foundation in New Delhi. "India will undoubtedly be mindful of structural factors such as sanctions against Russia and will seek to find a compromise with the Trump administration."
Reuters
an hour ago
- Reuters
Brazil's July trade surplus narrows 6.3% as imports outpace exports
BRASILIA, Aug 6 (Reuters) - Brazil posted a trade surplus of $7.1 billion in July, down 6.3% from a year earlier, as imports grew at a faster pace than exports, official data showed on Wednesday. Exports rose 4.8% to $32.3 billion, while imports jumped 8.4% to $25.2 billion, driven by strong demand across a broad range of goods. Year-to-date, the trade surplus shrank by a quarter to $37 billion when compared to the same period last year, as resilient domestic activity continued to support import growth. The government expects Latin America's largest economy to expand 2.5% this year despite an aggressive monetary tightening cycle that began last September to curb inflation and that has put the country's benchmark interest rate at a near 20-year high of 15%. July import growth was widespread, with double-digit increases across key categories including fertilizers, fuels, machinery and engines, auto parts, and pharmaceuticals. Export value gains, typically driven by commodities, were supported by modest increases in soybean shipments and more robust growth in coffee, crude oil and beef exports.
Scotsman
2 hours ago
- Scotsman
What Claire's Accessories' US bankruptcy means for UK shops
Once a teen shopping staple, the brand could vanish from UK high streets as changes loom 💔 Sign up to the weekly Cost Of Living newsletter. Saving tips, deals and money hacks. Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Claire's US parent company has filed for bankruptcy for the second time The UK arm is not directly affected but is now under review Attempts to sell the 280-store UK business have so far failed Sources say a UK administration filing is increasingly likely Some stores could close as part of a possible restructure or sale The future of a once-thriving high street staple hangs in the balance, as its US parent company files for bankruptcy, sparking fears that UK stores could be next in line for cuts or closures. For generations of British teenagers, Claire's Accessories has been a rite of passage — the go-to spot for getting your ears pierced, picking up sparkly jewellery, and loading up on scrunchies and hair clips before a school disco. Advertisement Hide Ad Advertisement Hide Ad But now, the American-owned fashion and jewellery chain has entered Chapter 11 bankruptcy proceedings in Delaware, citing rising debt, dwindling footfall, and a challenging retail landscape. It's the second time Claire's has filed for bankruptcy, following a similar move in 2018. (Photo: RICCARDO MILANI/Hans Lucas/AFP via Getty Images) | Hans Lucas/AFP via Getty Images Despite wiping $1.9 billion (£1.4bn) from its books during its last restructuring, the company says it's been hit hard by weak consumer spending and ongoing supply chain issues. Claire's CEO Chris Cramer said the decision to file for bankruptcy was 'difficult but necessary' given the brand's current financial obligations, rising competition, and the ongoing shift away from brick-and-mortar retail. Advertisement Hide Ad Advertisement Hide Ad 'Our employees have continued to work diligently in a constantly evolving consumer landscape to deliver amazing products and experiences for our customers,' he said. 'We remain committed to serving our customers and partnering with our vendors and landlords in other regions during this time.' The accessories chain is alsofacing the prospect of administration in the UK, as attempts to sell its 300-store British business appear to be faltering. Advertisement Hide Ad Advertisement Hide Ad What does it mean for UK stores? Claire's currently operates around 280 UK stores as part of a global network of more than 2,700 outlets across 17 countries. While the UK arm is not directly affected by the US bankruptcy proceedings, its future is now under review. According to reports, Claire's has brought in advisers from Interpath to explore a possible sale or restructuring of its UK business, but has so far failed to attract a viable buyer, according to Sky News. Retail turnaround firm Hilco, the owner of Lakeland, was reportedly among those interested in acquiring the UK operations, but is now understood to have pulled out, with other potential buyers also walking away due to the scale of the company's financial challenges. Sources told Sky that a formal administration filing this month is becoming increasingly likely. Advertisement Hide Ad Advertisement Hide Ad Could your local Claire's close? For now, all UK stores remain open, and customers can still shop in-store and online. But with the business undergoing a strategic review, some locations could be vulnerable to closure. Those in underperforming shopping centres or high streets already hit hard by wider retail decline are particularly likely to be affected by any future moves to shutter British branches of Claire's More updates are expected in the coming months, but shoppers and fans alike are being urged to make the most of Claire's while they still can. Are you struggling to make ends meet as costs continue to rise? You can now send your stories to us online via YourWorld at It's free to use and, once checked, your story will appear on our website and, space allowing, in our newspapers.
