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Indian shares fall as Infosys outlook disappoints
April 13, 2017 / 6:06 AM / 5 months ago

Indian shares fall as Infosys outlook disappoints

    * NSE index down 0.18 pct, BSE down 0.17 pct
    * Infosys shares fall to over 2-month low
    * Wariness about earnings continues - analyst

    By Tanvi Mehta
    April 13 (Reuters) - Indian shares fell on Thursday, dragged
by technology stocks, after Infosys Ltd's           revenue
outlook and plan to return cash to shareholders fell short of
expectations, raising concerns at the start of the earnings
reporting season.
    Infosys, the country's second-biggest software services
exporter, said it expected revenue for the year 2017-18 to grow
6.5 percent to 8.5 percent in constant currency terms, below
market expectations, while saying it would return up to $2
billion to shareholders.             
    The announcements sent Infosys stock down as much as 2.9
percent to its lowest since Feb. 9, offsetting early gains on
its slightly higher-than-expected consolidated net profit, and
cast a shadow over future earnings results.
    The broader NSE index         hit a record high last week
and is up about 12 percent this year, with a lot of those gains
reflecting bets that corporate earnings would recover this year.
    However, concerns persist as geopolitical worries have grown
after the United States launched cruise missiles against an air
base in Syria last week and on fears of a new weapons test by
North Korea.            
    "There is wariness about earnings because valuations are so
stretched," said Sunil Sharma, chief investment officer, Sanctum
Wealth Management.
    "Markets have run up and people are looking at booking
profits." 
    The broader NSE index         was down 0.18 percent at
9,186.60 as of 0524 GMT, poised for a weekly loss of about 0.14
percent. 
    The benchmark BSE index          was 0.17 percent lower at
29,593.28, headed for a 0.4 percent weekly fall.
    Indian shares are headed for a fall this week, reversing
gains of about 0.3 percent made last week.
    The Nifty IT index            fell as much as 1.75 percent
to its lowest in over two months. The index has fallen about 0.7
percent this year, up to Wednesday's close. 
    However, financial stocks continued to rise with the Nifty
PSU Bank index             trading 1.1 percent higher. Up to
Wednesday's close, the index has risen nearly 18.4 percent.

 (Reporting by Tanvi Mehta in Bengaluru; Editing by Gopakumar
Warrier)
  

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