Indian shares fall; sudden drop in Tata Motors, Ultratech spooks investors

Fri Feb 1, 2013 5:49pm IST

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* BSE index falls 0.57 pct; NSE ends 0.59 pct lower
    * Morgan Stanley adds more energy to India model portfolio
    * Bharti's December quarter profit misses estimates by a
wide margin

    By Abhishek Vishnoi
    MUMBAI, Feb 1 (Reuters) - Indian shares fell on Friday to
mark their lowest weekly close since Jan. 13 after a sudden
slump in Tata Motors and Ultratech Cement shares about 20
minutes before the close spooked investors. 
    Tata Motors Ltd and Ultratech shares
briefly dropped as much as 10 percent each, before sharply
cutting losses, after a series of shares were sold at lower
prices. 

 
    
    The sharp falls in shares of the two companies sparked
reminders of a flurry of erroneous orders for a broad basket of
shares placed by an Indian broker that sent the country's top
stock market tumbling in October. 
    Analysts say such incidents can sap the confidence of
investors at a time when the central bank has cautioned that
further rate cuts are conditional on government action to
control India's twin deficits.
    "These incidents would affect sentiment of investors and
government should therefore bring the physical settlement of
derivatives to avoid such instances," said Kishor Ostwal,
chairman and managing director, CNI Research.
    The BSE index fell 0.57 percent, or 113.79 points,
to end at 19,781.19. It lost 1.6 percent for the week.
    The broader NSE index fell 0.59 percent, or 35.85
points, to end at 5,998.90, closing below the psychologically
important 6,000 level, also ending 1.2 percent lower for the
week.
    The sudden fall in the share prices of these Index stocks
added to investor worries after Indian manufacturing slowed to a
three-month low in January, and Bharti Airtel Ltd 
missed its earnings estimates by a wide margin. 
    Shares also fell on profit-taking after the BSE index
 added 2.4 percent in January to post its third-straight
monthly gain.
    Tata Motors shares fell 5.49 percent after six separate
block deals comprising 2.07 million shares took place at an
average price of 274.92 rupees. The sales sent the auto maker's
shares as low as 268.25 rupees.
    Ultratech shares fell 3.4 percent after one block deal of
41,863 shares at an average price of 1,853.80 rupees. They
dropped as low as 1,712.35 rupees. 
    Shares in Bharti Airtel, India's top telecoms carrier, fell
3 percent, after October-December profit missed estimates by a
wide margin. 
    Bharat Heavy Electricals Ltd shares fell 1.2
percent after India's top power equipment maker missed analyst
estimates with a 17.5 percent fall in third-quarter net profit,
hit by a slowdown in new orders. 
    Hindustan Unilever fell 1.9 percent after Morgan
Stanley reduced its weightage on consumer staples stocks in its
Indian model portfolio by 1 percent. It also raised weightage of
energy stocks to 3 percent.  
    Satyam Computer Services Ltd shares fell 1.6
percent after Kotak Institutional Equities downgraded it to
"reduce" from "add", noting October-December revenue growth was
"muted", given the impact from furloughs in the high-tech and
manufacturing segments. 
    Among the gainers, Maruti Suzuki India shares rose
1.8 percent after reporting better-than-expected January vehicle
sales at 114,205 units. 
    Bajaj Auto shares also rose 1.4 percent ahead of
its monthly sales data.
        
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Euro shines on upbeat euro zone data, yen slides        
* Brent climbs towards $116 on Mideast tensions            
* Euro gains but shares steady before economic data  
* 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     
                       
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U.S. earnings diary     European diary       
Indian diary          Wall Street Week Ahead  
Eurostocks Week Ahead                                   
                         
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 (Additional reporting by Manoj Dharra; Editing by Prateek
Chatterjee)
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