(MENAFN- Gulf Times) Indian stocks capped the first weekly drop in four weeks yesterday as the nation's largest software developer declined after reporting quarterly results.
Tata Consultancy Services slid for a fourth day after its sales for the quarter ended June 30 grew at a slower rate than some analysts forecast. Bharti Airtel, the biggest phone company, fell the most in more than three months. Vedanta, a copper producer, rallied from its lowest level since August 2013.
The Sensex gained 0.3% to 27,661.40 at the close in Mumbai yesterday, after changing direction at least 15 times. The gauge dropped 1.5% the past week, the most since the period ended June 5. TCS's first-quarter sales growth of 16% was slower than some analysts' expectations.
"The markets will trade in a broad range and will be volatile," Jagannadham Thunuguntla, head of fundamental research at Karvy Stock Broking, said in a phone interview. "We don't have control over global macros, you have to take it as it comes. The direction of the Indian market will be set by how the Indian corporate earnings and the economic recovery pan out."
Asian stocks rose Friday as Chinese equities rebounded for a second day and Greece submitted a bailout proposal similar to that proposed by its creditors.
The MSCI Asia Pacific Index climbed 0.5%, paring this week's drop to 3.5%. The Stoxx Europe 600 Index rose 1.7%. It extended gains after a European Union official said institutions will form a view on Greece's proposal later Friday, and that the region's leaders need not hold a summit Sunday if an agreement is reached. Benchmark gauges of Spain, Italy and France, which entered corrections on Monday, surged more than 2.6%.
The Shanghai Composite Index advanced 4.5%, capping the benchmark index's biggest two-day gain since 2008, as unprecedented government intervention helped curb an equity rout that erased $3.9tn in less than a month.
TCS shares fell 1.9% to their lowest close since May 6. Morgan Stanley lowered the company's US dollar-denominated revenue forecasts through the year ending March 2018 by as much as 3.3% after Thursday's earnings report, and said it saw limited room for an increase in the stock.
Meanwhile the rupee gained 0.1% in the week and was little changed yesterday at 63.40 a dollar in Mumbai, according to prices from local banks compiled by Bloomberg.
Indian sovereign bonds fell for a fourth day, pushing the 10-year yield to a one-week high, on speculation faster inflation will deter the central bank from cutting interest rates.
RBI Governor Raghuram Rajan linked further policy action to the strength of the monsoon as he cut benchmark borrowing costs for a third time this year on June 2.
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