Sensex falls 110 points on earnings caution

The BSE Sensex fell on Friday, as Reliance Industries extended a recent losing run on continued worries about the outlook for its refining margins and as recently outperforming financial stocks such as HDFC were hit by profit-taking.

However, gains in ITC Ltd to a record high capped broader losses after the cigarette maker posted a 22 per cent surge in July-September earnings despite the challenge of higher taxes and tighter anti-smoking rules in several states.

Shares have struggled recently, with the Sensex down 0.4 per cent this month after rallying 7.7 per cent in September, as the impact from the government's fiscal and economic reforms fade.
 

MOSTED TRADED (in number of shares)
	Price (Rs)	% Chg*	Shares# (mn)
Unitech	26.50	-1.85	29.12
TV18 Broadcast	32.40	3.85	18.64
HDIL	102.80	-2.56	17.56
Subex	16.99	9.33	16.57
JP Associates	93.45	-1.79	15.93
Exide Ind	148.35	-8.82	14.89
ITC	297.50	2.09	14.86
Lanco Infra	13.70	-3.18	13.71
Indiabulls Real	62.35	-3.41	13.54
Karnataka Bank	131.50	1.04	13.35
*% Change Over Previous Close; #Combine Shares (BSE+NSE)

The Sensex fell 0.58 per cent, or 109.62 points, to 18,682.31. The index rose 0.04 per cent for the week. The 50-share Nifty lost 0.6 per cent, or 34.45 points, to 5,684.25, but added 0.14 per cent for the week. Earnings have been a key driver of share performance. Reliance Industries fell 1.05 per cent, bringing its losses to two per cent for the week, on worries about whether the energy conglomerate can sustain the rebound seen in its refining margins for the July-September quarter out on Monday.

Battery maker Exide industries shares slumped 8.9 per cent after profit and margins missed market estimates as higher costs dented operating performance. Adani Power Ltd dropped 2.4 per cent after swinging to a July-September net loss of Rs 260 crore from a Rs 170 crore profit a year ago.

Bank shares fall on profit-taking: ICICI Bank lost 0.7 per cent after gaining 18 per cent since the end of August yesterday's close, outperforming the Nifty which gained 8.75 per cent during the same period. HDCF Bank lost 1.2 per cent, while mortgage lender HDFC declined 1.1 per cent. Shares in Kingfisher Airlines dropped 4.6 per cent.

However, among gainers, shares in ITC rose two per cent, after earlier hitting a record Rs 299. The tobacco firm's higher cigarette prices protected margins from stagnant volume growth.

Shares in jewellery companies, gained on hopes of a spike in jewellery sales ahead of the festive season in India, when consumer spending appetite traditionally increases.

Shree Ganesh Jewellery gained 8.9 per cent, while Tribhovandas Bhimji Zaveri Ltd gained 10.9 per cent.