Markets retreat from record highs as global markets fall
ally controlled by CESC Ventures Ltd on conclusion of an ongoing restructuring exercise.
The group is also looking to set up new manufacturing facilities from scratch, Goenka said, adding that food parks in various states such as West Bengal, Uttar Pradesh, Rajasthan, Telengana and Andhra Pradesh are being considered to locate the facilities in.
The group has budgeted for a capital infusion of ₹150 crore over the next two years to scale up its snacks business, according to Goenka.
The business has got off to a “great start” with “demand exceeding production” even with new facilities being built, he added.
Speaking about Spencer’s Retail Ltd, which runs superstores, Goenka said the privately held arm of CESC had for the first time fully recovered operating costs in the June quarter, achieving what he described as “cash break-even”.
Alongside, CESC will seek to expand its distribution business and is eyeing opportunities in Uttar Pradesh, Goenka said.
Indian equities retreated from record highs on Friday after a global sell-off by investors who were spooked by worse-than-expected earnings reported by companies ranging from American Internet giant Amazon.com.Inc. to French automaker Renault SA.
Potential unrest in Pakistan following Prime Minister Nawaz Sharif’s disqualification from office, which led to his resignation, also shook investors in South Asia.
Sensex closed down 73.42 points, or 0.23%, at 32,309.88 while the Nifty fell 6.05 points to 10,014.50, after scaling record highs in the four previous sessions. Both would have fallen more but for steady buying in Infosys Ltd and Housing Development Finance Corp. Ltd.
A local sell-off in shares of pharma companies, which reported poor earnings, drove down India indices.
The global rout was sharpest in technology shares. Overand night, Amazon and Twitter shares dragged on US tech stocks after the former forecast a potential loss for the first time in two years. In the June quarter, the technology giant posted a profit of $197 million, down 77% from a year ago.
US stock index futures were lower on Friday. Amazon’s shares were down 2.96% in premarket trading.
Europe’s benchmark equity gauge headed for a three-month low as automakers also slumped after Renault SA’s profit fell short of estimates.
ASML Holding NV paced technology-stock losses in the region after Samsung Electronics Co. and Tencent Holdings Ltd. led declines in Asia. These dragged indices such as Kospi by 1.73%, Hang Seng by 0.56% Japana’s Nikkei 0.6%.
The MSCI Asia Pacific Index dropped 0.7%, erasing its gain for the week. Tech shares in the gauge fell 1.5%.
The sell-off came after US and global stocks rallied to records amid signs of economic growth and as more than three-quarters of reporting S&P 500 companies delivered earnings that beat forecasts.
Technology shares have led the charge, with companies in the sector soaring 22% this year for the best performance among 11 groups in the S&P 500.
“With Amazon’s earnings falling short of estimates, the US market may readjust its expectations,” said Hideyuki Ishiguro, a senior strategist at Daiwa Securities Co. in Tokyo.
India’s relatively stable macroeconomic environment will serve as a shield, local analysts said.
On Monday, the International Monetary Fund kept its outlook for India’s gross domestic product growth rate unchanged at 7.2% in 2017-18 and 7.7% in 2018-19.