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Stocks in India fell to their lowest level since June, as corporate earnings so far this season have offered little hope to investors betting on an economic recovery.

The NSE Nifty 50 Index declined 1.4% to 23,024.65 on Tuesday, marking a fall of over 12% from its September peak. The nation’s equity benchmark was among the region’s worst performers after Donald Trump’s inauguration, with Indian companies like Reliance Industries Ltd. and ICICI Bank Ltd. featuring among the top drags on the MSCI Asia Pacific Index.

“Earnings of Indian companies continue to be disappointing, and uncertainty over Trump’s potential trade policies are adding to worries,” Pratik Karmakar, co-founder of Bengaluru-based portfolio manager East Green PMS said.

About a fortnight into the results season, only three of the 10 Nifty members that have reported so far have beaten estimates. While inflows into mutual funds remain robust, net sales of about $5 billion by foreign investors so far this year have neutralized much of that, exacerbating the weakness in share prices.

Shares of Zomato Ltd. and its peer Swiggy Ltd. tumbled on Tuesday after the earnings commentary from India’s biggest food-delivery company amplified concerns about intensifying competition in the quick-commerce space.

While some industries are seeing weak demand, analysts caution that even in fast-growing sectors, intense competition is squeezing profit margins for both established players and the challengers.

The Nifty is now trading at little over 19 times its 12-month forward earnings, compared with the 10-year average of about 18 times. But the problem, according to Kotak Institutional Equities lies in the broader market where most pockets still frothy and could correct more.

Investor focus is now turning to the federal budget announcement on Feb. 1, where they hope for measures to stimulate consumption and provide a boost to growth.

Written by: @Bloomberg