Indian stocks fell for a second day, deepening their first weekly decline in three, after disappointing sales guidance from Infosys Ltd weighed on information-technology companies and a slump in iron ore prices dragged down commodity producers.
The S&P BSE Sensex declined 0.6% at close in Mumbai, extending its weekly loss to 0.8%. Infosys tumbled to a two-month low after forecasting sales growth that fell short of estimates. Tata Consultancy Services Ltd, Asia’s largest technology exporter, dropped the most in a month. Tata Steel Ltd and Hindalco Industries Ltd both declined as global iron ore prices fell the most in a year overnight.
Investors are assessing the quarterly reporting season, which started yesterday, for signs of earnings support for the recent rally which drove the Sensex’s valuation to a near six-year high. The index is the top-performing gauge this year among the world’s 10 biggest stock markets.
“Infosys sales guidance is disappointing for the whole IT sector,” Rajendra Wadher, director at PRB Securities Ltd, said. “Investors are keenly watching out for company earnings as stock prices are hovering near a record high and need support from fundamentals.”