2014.08.0102:38:36UTC+00Indian stocks extend loss to a second day on global equity selloff

Indian stocks sank for the second consecutive day with the benchmark index poised for a weekly decline after two weeks of gains on an overnight global equity selloff. The Indian market’s local share prices worries investors as it may surpass the outlook for earnings.

The S&P BSE Sensex shed 0.5% to 25,762.91, 10:16 am, Mumbai time. The gauge will end the week with a total of 1.4% loss. Yesterday ended trading for the month of July with the index adding a total of 1.9% for the month. July witnessed a victorious trading activity for the Indian market as the gauge extended another gain for the sixth consecutive month and held the longest winning streak last seen in January of 2007. Meanwhile, the MSCI Asia Pacific Index are on board with most of the global markets as it declined, extending a global selloff with the US companies releasing disappointing corporate earning and worry over credit market proliferating.

For the year through yesterday, the Sensex has a total of 22% gain which puts it in the top spot for the world’s 10 biggest markets. Compared to the multiple of 11 of the Emerging Markets Index the Sensex is valued at 15.4 times projected 12-month earnings. Nine of the sixteen companies of Sensex that has already reported corporate earnings for the second-quarter either surpassed or matched profit predictions compared to first-quarters 60% which posted either exceeding or matching analyst estimates. Still earlier, the companies of Sensex had a total of 73% for those that went beyond or matched revenue forecast.

Tech Mahindra Ltd. and DLF Ltd. both lost in the trading session as the former reported a worse-than-expected corporate earnings for the software maker while the latter showed a 29% decline in its earning, driving India’s largest developer to a second consecutive day loss. Larsen & Toubro Ltd. was not able to stimulate the index as well as it decreased further, making today the fifth consecutive day of decline, its longest in three months. The Indian rupee is also in a downtrend, weakening for a second day by 0.5% to 60.8662 per dollar.