Indian shares fall most in nearly 1-1/2 months; blue chips hit
BSE index falls 1.19 pct; NSE ends 1.28 pct lower
* Global shares fall as China disappoints
* Midcap Indian state-owned banks rise on valuations
MUMBAI, Jan 2 - Indian shares fell more than 1
percent on Thursday, posting their biggest single-day percentage
fall in nearly 1-1/2 months as profit-booking hit blue chips
such as ICICI Bank for a second consecutive day, in a weak start
to 2014.
Combined with Wednesday's fall, the benchmark BSE index
is down 1.3 percent over the first two trading sessions
of the year, after gaining 8.9 percent last year on the back of
strong foreign buying.
Falls on Thursday were accentuated by weaker European and
Asian shares after disappointing manufacturing data from China.
Shares have started the year with caution ahead of upcoming
quarterly earnings, with analysts also keenly awaiting inflation
data due mid-month that will help determine whether the Reserve
Bank of India raises interest rates at the end of January.
Any rate hikes could further undermine confidence in
economic growth. Data on Thursday showed the HSBC Manufacturing
Purchasing Managers' Index (PMI), compiled by
Markit, fell to 50.7 in December from 51.3 in the previous
month, reflecting softness in new domestic orders.
"Earnings would be more important from equity market's
perspective as market has discounted some cooling off in
inflation. We are expecting some positive surprises in Oct-Dec
results," said Sudip Bandyopadhyay, managing director at
Destimoney Securities Pvt Ltd.
The benchmark BSE index fell 1.19 percent, or
252.15 points, to end at 20,888.33, erasing earlier gains of as
much as 0.9 percent.
The broader NSE index lost 1.28 percent, or 80.50
points, to end at 6,221.15, posting its lowest close since Dec
19.
Both indexes marked their biggest single day fall since Nov
21.
ICICI Bank Ltd fell 2 percent after earlier rising
as much as 1.9 percent, while Axis Bank Ltd lost 1.5
percent.
Among non-banking lenders, IDFC Ltd lost 4.7
percent, erasing earlier gains of 1.5 percent, while Housing
Development Finance Corp Ltd ended 0.3 percent lower.
In other blue chip shares, Larsen and Toubro Ltd
fell 3 percent, while ITC Ltd ended lower 2.3 percent.
However among stocks that gained, midcap state-owned banks,
including Corporation Bank Ltd, rose as dealers cited
attractive valuations compared with larger private sector
rivals.
Corporation Bank and Indian Bank Ltd ended up 0.5
percent each.
For additional stocks on the move double click
FACTORS TO WATCH
* Dollar near 5-year high vs yen, eyes on U.S. data
* Brent rises above $111, but weak China data drags
* Asia shares turn mixed as China disappoints
* Foreign institutional investor flows
* For closing rates of Indian ADRs
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........ Japan....... S.Korea...
S.E. Asia....... Hong Kong... Taiwan....
Australia/NZ.... India....... China.....
OTHER MARKETS:
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
Indian Data Watch Asia earnings diary
U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
TOP NEWS:
For top Asian company news, double click on:
U.S. company news European company news
Forex news Global Economy news
Technology news Telecoms news
Media news Banking news
Politics/General Asia Macro data
