July 31, 2019 / 5:21 AM / 19 days ago

CORRECTED-Indian shares edge lower on Asian cues, weak results

(Corrects paragraph 8 to say $180 billion, not million)

* NSE index down 0.6%, BSE index falls 0.54%

* Axis Bank falls as much as 5%; Yes Bank gains

* Coffee Day sinks 20% more to record low, chairman found dead

By Derek Francis

BENGALURU, July 31 (Reuters) - Indian shares traded lower on Wednesday tracking broader Asia on fresh concerns about the U.S.-China trade war, while weak corporate results continued to hamper the south Asian country’s indexes in their worst month since September last year.

As a new round of trade negotiations started in Shanghai, Trump tweeted that if he wins re-election in November 2020, the outcome could be no agreement or a harsher one.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7% to the lowest since June 19.

India’s broader NSE index fell 0.6% to 11,018.45 as of 0500 GMT, while the benchmark BSE index dropped 0.54% at 37,193.35. Both indexes were on track for their worst July since 2002.

Most sectors were trading in the red. The Nifty FMCG index fell about 1%, while the Nifty bank and financials indexes fell about 0.5% each.

“Earnings continue to disappoint in this season as well, reinforced by slowdown commentary from companies across sectors,” said Rajesh Cheruvu, chief investment officer at Validus Wealth.

Hero Motocorp saw a volatile morning, when the shares swung between gains and losses. The stock was last seen up 1.9%. India’s biggest motorcycle maker reported a better-than-expected first-quarter profit, helped by a one-time gain.

Tech Mahindra Ltd fell as much as 5% after the company’s profit missed estimates, bucking the trend of its larger rivals in the $180 billion Indian IT sector.

Axis Bank was the other major loser on the NSE index due to weaker-than-expected earnings on higher provisions, with the stock falling as much as 5%.

Coffee Day Enterprises touched a fresh low, hitting the lower circuit for the second day with a 20% fall, after police retrieved the body of the cafe chain’s founder, who was missing since Monday night and had reportedly committed suicide.

Among gainers, Yes Bank shares rose about 2.4%, while Zee Entertainment and Sun Pharma were up about 1.8% each. (Reporting by Derek Francis in Bengaluru; editing by Gopakumar Warrier)

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