With the booming of ITC Ltd., the Hero Honda Motors Ltd. have found to decline and this has made India’s benchmark stock index swung between advances and losses.
Hero Honda which is known as the India’s biggest motorcycle maker today has reported to slide for the sixth day and that too before its earnings.
At the same time, the Drug maker Biocon Ltd. (BIOS) and Exide Industries Ltd. (EXID), which is a battery maker, by missing their targeted earnings, also met a downfall.
ITC that is the largest cigarette company was the only one to climb up, making a smashing record.
Due to this swing between the gains and losses for more than 10 times, the Bombay Stock Exchange Sensitive Index, or Sensex, has also fell down by less than 0.1 percent, reaching to 18,487.88.
Despite of increasing interest rates, this index is considered as the second-worst performer among main indexes amidst the world’s 10 biggest markets.
According to the reports, there are six Sensex companies and out of them three have missed their targets for June quarter. Reason behind this is the rising borrowing costs that have badly damped the demand.
In this regard, Andrew Holland, Chief Executive Officer for equities at Ambit Capital Pvt. Ltd. said, “I suspect this result season is going to be worse than the last season. Companies which will not perform well will be punished. Foreign investors will take a long time to come back to those stocks”.
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