|
New Delhi: Indian shares shed 0.6 per cent on Monday, led by top private firm Reliance Industries and financial stocks, as investors were wary ahead of a central bank monetary review today when it may tighten policy to fight inflation.
No. 2 lender ICICI Bank ended 2.3 per cent down at Rs894.95, after rising as much as 3.4 per cent in early deals on a forecast-beating 39 per cent rise in quarterly profit.
Top lender State Bank of India fell 0.8 per cent to Rs1,736.65.
"No one wants to take positions before the review," said Ketan Dedhia, managing director of Nalanda Securities in Mumbai. "Even the institutions have kept quiet, only selective buying is happening. So overall, the market is slightly cautious."
Dedhia expects a quarter point rise in the central bank's short-term lending rate, known as repo rate, to eight per cent.
A Reuters poll last week showed analysts were divided on the likely outcome of the review, with a slim majority expecting no change to interest rates, while others see a moderate 25 basis point increase in the repo rate.
Headline inflation is ruling near three-year highs and has become a major headache for the ruling Congress Party ahead of a string of state elections.
The 30-share BSE index closed down 0.64 per cent, or 110.02 points, at 17,015.96, with 21 of the components falling, after starting 0.7 per cent higher.
The index had gained 3.9 per cent last week in a third successive weekly rise, but is down more than 16 per cent in 2008.
In the broader market, losers beat gainers 1,375 to 1,293 on volume of nearly 315 million shares.
Shares in Reliance Industries, India's most-valuable firm, closed 1.2 per cent down at Rs2,592.05, erasing early gains of as much as 0.6 per cent.
But No. 2 mobile operator Reliance Communications, which reports quarterly results on Wednesday, rose 1.3 per cent to Rs584.80.
Sector leader Bharti Airtel last week reported a forecast-beating 37 per cent rise in quarterly profit and yesterday cut long distance and roaming tariff to boost usage in the world's fastest-growing mobile market.
Bharti shares edged up 0.3 per cent at Rs927.85, while sixth-largest operator Idea Cellular gained 1.4 per cent to Rs109.05.
The 50-share NSE index ended 0.43 per cent down at 5,089.65.
Software services firm KPIT Cummins Infosystems shares fell 15.5 per cent to Rs90.25 after the company said its mark-to-market loss on foreign exchange derivatives stood at Rs892.68 million at the end of March.
Drug maker Glenmark Pharmaceuticals rose 4.4 per cent to Rs625.80 after its net profit soared to Rs2.19 billion for March quarter, beating a Reuters poll estimate of Rs1.67 billion.
Power transmission equipment maker Siemens fell 9.9 per cent to Rs580.65 after its quarterly net profit slumped 98 per cent.
Elsewhere in the region, Colombo's All-share index fell 0.51 per cent to 2,638.08.
Pakistan: Karachi index gains
Pakistan's benchmark Karachi Stock Exchange 100 Index rose 44.48, or 0.3 per cent, to 15,479.22 at the 2.15pm local-time close.
Pakistan Petroleum, the No. 1 gas producer, gained Rs6.07, or 2.2 per cent, to Rs278.52. Pakistan Oilfields, the third biggest fuels explorer, advanced Rs14.50, or 3.5 per cent, to Rs427.50. Pakistan State Oil, the biggest fuel retailer, rose Rs7.30, or 1.5 per cent, to Rs509.30.
- Bloomberg
|
