Mumbai: Indian shares fell 0.8 per cent on Thursday to their lowest close in about a month after blue-chip Reliance Industries' quarterly result disappointed investors, already shaken by US recession concerns.
Reliance, India's most-valuable firm, lost 3.3 per cent to Rs 2,996.25, its lowest close in about two weeks, after it reported a 3 per cent drop in revenue from its core petrochemical business even as its quarterly profit more than doubled, boosted by one-time gains.
Number 2 lender ICICI Bank fell 3.5 per cent to Rs 1,321.80, reflecting poor global sentiment for financials. The stock has fallen 8.2 per cent in four days after rising 12 per cent last week on its plans to list some subsidiaries.
The main 30-share BSE stock index ended down 0.84 per cent, or 167.29 points, at 19,700.82, extending a decline to the four session in a row.
It was the lowest close since December 20, and 17 index components ended in the red.
The benchmark, which had risen 0.5 per cent in opening deals, has lost 5.4 per cent or about 1,127 points this week.
"I think this is because of global fears. US recession and stuff like that," said Jayesh Shroff, a fund manager at SBI Funds Management.
US stocks fell on Wednesday, after Intel Corp posted a disappointing profit and outlook, adding to a slew of indicators showing the world's largest economy may be on the brink of a recession.
"We are also seeing some liquidity squeeze partly because of the initial public offerings," Shroff said.
Utility Reliance Power received full subscription for its record $3 billion initial public offer within a minute of its opening on Tuesday. The sale closes on Friday and has so far been subscribed more than 20 times.
Future Capital Holdings, which was aiming to raise $124 million, saw its public offer that closed on Wednesday was subscribed by 133 times.
Shroff said he was expecting the market to rebound if quarterly results remained on track.
Tata Consultancy Services fell 2.3 per cent to Rs 922.65 after Kotak Securities said the number one software services exporter might remain an underperformer in the medium term due to the grim economic outlook in the United States, where the company earns about half its revenue.
Late on Wednesday, the company beat forecasts with a 20.5 per cent rise in quarterly profit and said it was confident about growth but there was need for caution.
Shares in top tobacco maker ITC Ltd gained 4 per cent to Rs 217.10 as Morgan Stanley raised its target price to Rs 220 from Rs 160, saying ITC was a good defensive stock in the current volatile market. ITC, which also runs hotels and makes consumer goods, reports quarterly earnings on Friday.
Top car maker Maruti Suzuki, which launched five new models in the past one year to beat a slowdown in the automobile sector after interest rate rises, gained 2.8 per cent to Rs 867.30 on hopes of strong results, traders said.
In the broader market, gainers beat losers by more than two to one on volume of 594 million shares. The broader 50-share NSE index fell 0.38 per cent to 5,913.20.
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