Nifty Heads for 4th Day of Fall Ahead of Derivatives Expiry

Mumbai: The Nifty headed for a fourth straight decline in a volatile session ahead of the expiry of monthly derivatives contracts, even as growing concerns over lacklustre corporate earnings hurt sentiment.

Blue-chips fell, with Housing Development Finance Corp down 2.5 per cent and HCL Technologies Ltd easing 2.6 per cent.

The Nifty was down 0.15 per cent while the benchmark Sensex fell 0.17 per cent.

"We are seeing a fall in Asian markets that is having a rub-off effect on trading positions ahead of expiry," said Daljeet S Kohli, head of research at IndiaNivesh Securities.

Caution ahead of earnings announcements also dragged down shares including those of Hindalco Ltd, which were down 2.25 per cent. Coal India Ltd fell 3.95 per cent and Mahindra and Mahindra Ltd was down 2.72 per cent.

Weak earnings growth posted by Indian companies for the Jan-March quarter have put investors on guard, worried that a rebound in growth can take longer than expected.

India is expected to release data on Friday that will show the economy growing faster than China for a second consecutive quarter. However, sceptics argue there has been little progress to show on the ground.

Punjab National Bank shares fell 1.2 per cent after Goldman Sachs downgraded the stock to 'sell' from 'neutral', citing continued deterioration in asset quality, higher exposure to risk assets.

Among gainers, Tata Motors Ltd shares recovered to gain over 2 per cent after Wednesday's post-earnings sell-off was seen to be overdone.