Sensex sees marginal fall as JPMorgan cuts estimates

The Bombay Stock Exchange Sensitive Index, Sensex, fell, with ICICI Bank leading financial shares lower after JPMorgan Chase & Co cut its earnings estimates for lenders.

“We expect balance-sheet growth, and correspondingly fee income, to slow down,’’ Sachin Sheth, an analyst at JPMorgan, said in a note to clients. “The combination of lower top-line growth and higher provisions is likely to squeeze earnings growth below current consensus estimate levels.’’

Infosys Technologies led gains among software developers after Credit Suisse Group raised its rating, along with that of two rivals, saying lower costs will help companies maintain profitability.

Sensex slid 12.09, or 0.1 per cent, to 8,903.12. The S&P CNX Nifty Index on the National Stock Exchange added 14.80, or 0.6 per cent, to 2,708.25. The BSE 200 Index fell less than 0.1 per cent to 1,048.17.

ICICI, the nation’s second-largest lender, fell 3.4 per cent to Rs 322.55. HDFC Bank, the No 3, declined 3.2 per cent to Rs 829.10. Axis Bank slid 3.4 per cent to Rs 397.55.

JPMorgan cut its earnings estimates for the financial year ending March 2010 for HDFC Bank, ICICI and Axis Bank by between 10 per cent and 30 per cent, according to the note.

Tata Consultancy Services, India’s largest software developer, had its stock rating raised to “outperform’’ at Credit Suisse. Infosys Technologies’ stock rating was raised to “outperform’’ from “neutral,’’ while Wipro was rated “outperform’’ from “under-perform’’ at Credit Suisse. Tata Consultancy added 2.7 per cent to Rs 519.90. Infosys climbed 1 per cent to 1,196.20. Wipro added 1.9 per cent to Rs 234.20.

Overseas funds sold a net Rs 514 crore ($127.4 million) of Indian stocks on November 21, increasing outflows from stocks this year to $13.4 billion, the market regulator said.