Sensex inches lower; Reliance, Infosys provide resistance

MUMBAI (Reuters) - India's stock markets edged lower on Friday, weighed down by falls in Asian markets and expectations of weak corporate earnings back home, but gains in index heavyweights such as Reliance and Infosys helped put a floor beneath markets.

The losses were leading shares to a second consecutive weekly loss, as worries about the stability of China's markets and the slump in oil prices have weighed on investor confidence.

The Nifty was down 1.13 percent for the week.

Losses in India have snowballed further down to mid-cap and small-cap stocks, that had run-up significantly in the past few months, and are now correcting sharply.

 

"Till results season ends there could be weakness continuously. The large-cap stocks could correct purely on a sentiment basis," said G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.

The broader Nifty was down 0.29 percent at 0831 GMT. The benchmark BSE index <.BSESN> fell 0.3 percent.

Drugmaker Wockhardt fell 13 percent on reports that the U.S. Food and Drug Administration had issued a notice highlighting concerns over its Shendra drug manufacturing plant in western India.

Shares in Hindustan Unilever fell 1.7 percent ahead of reporting its third-quarter results.

However supporting the market was NSE index heavyweight Reliance Industries that rose 2 percent.

Reliance has gained about 5 percent since the start of the year on expectations that the bulk of its capex spending is behind the company and the upcoming launch of its 4G network Jio will bring in significant cash flows.

IT major Infosys added to 5 percent gains from Thursday and was up 1.75 percent on expectations that its better-than-expected earnings would help re-rate the stock.

(Reporting by Karen Rebelo in Mumbai; Editing by Anand Basu)