(Reuters) – Indian shares fell in line with broader Asia on Monday after a shock contraction in Chinese exports raised fears of a sharper global slowdown, but the blow was cushioned by gains in Infosys Ltd after the IT major raised its revenue forecast and announced a buyback.
The latest data disappointment in China reinforced fears that U.S. tariffs on Chinese goods were putting a big strain on China’s already cooling economy.
Back home, shares continued trading in the red for a third straight session but Infosys helped trim losses on the index. Shares of the company climbed as much as 3.9 percent to their highest since Dec. 17.
Larger rival Tata Consultancy Services Ltd fell 1.8 percent to a seven-week low, extending its decline from last week.
The broader NSE Nifty fell 0.57 percent to 10,733.40 as of 0519 GMT.
The benchmark BSE Sensex lost 0.54 percent at 35,814.65.
“Results are not very clear, near term. With elections approaching, I think there is not much confidence in the market to carry forward long positions,” said Krish Subramanyam, co-head, equity advisory, at Altamount Capital.
“Traders are cautious, global factors will always have an influence on our market, but domestically results are coming out, banks are losing ground, so we are waiting for further hints.”
Housing Development Finance Corporation was the biggest drag on the Nifty. Nifty private bank index fell as much as 1 percent with Axis Bank declining 1.83 percent and ICICI Bank Ltd slipping as much as 1.4 percent.
“There will be more selling pressure until a stable government comes to the centre, so we are watching the election for cues too.” Subramanyam added.
India’s ruling party lost power in three key states in December, handing Prime Minister Narendra Modi his biggest defeat since he took office in 2014 and boosting the opposition ahead of national polls due by May.
Shares of Avenue Supermarts tumbled as much as 9.51 percent and were on track for their third consecutive session of losses after the company posted a dip in quarterly margin.
Reporting by Chandini Monnappa in Bengaluru; Editing by Shreejay Sinha