RPT-Indian shares post biggest fall in 7 months; bank shares hit

Thu Feb 21, 2013 5:03pm IST

Related Topics

Stocks

   

(Repeats for wider distribution)
    * BSE ends 1.62 pct down; NSE falls 1.53 pct
    * Indian banks' credit growth drags

    By Manoj Dharra
    MUMBAI, Feb 21 (Reuters) - Indian shares posted their
biggest fall since July 2012 as banking stocks such as ICICI
Bank fell a day after RBI data showed loan growth was
still a concern and on weakness in global shares due to worries
over Fed slowing its bond-buying programme.
    This was largely a reflection of the fall in risk assets
which fell after minutes of the Federal Reserve's last policy
meeting cast doubts over how much longer the U.S. central bank
would stick to its stimulus plan.
    "The selling pressure is more global, than due to local
factors. Some liquidation might continue after such high
inflows," said Phani Sekhar, a fund manager at Angel Broking.
    The government may peg its fiscal deficit target at 4.8
percent of GDP for the next fiscal year, but it needs to explain
as to how the figure is arrived at, he said.  
     The Union Budget to be presented on Feb. 28 will be keenly
watched as a test of the government's commitment to fiscal
responsibility, whether it has a credible plan for reducing the
deficit and whether populist measures can be avoided before the
general elections in 2014. 
    The BSE index fell 1.62 percent, or 317.39 points,
to end at 19,325.36, posting its biggest daily fall since July
23, 2012.
    The index closed at its lowest level since Dec. 24, 2012.
    The 50-share NSE index fell 1.53 percent, or 90.80
points, to end at 5,852.25.
     Banking shares were among the major losers after RBI data
showed loan growth continued to remain a concern. ICICI Bank
 fell 3.74 percent while State Bank of India 
ended 1.84 percent lower.
    Banks' advances have grown 8.7 percent so far this fiscal
year compared with 11.2 percent a year earlier, while deposit
growth was 7.8 percent compared with 11.4 percent in the same
period a year earlier. 
    Yes Bank fell 4.37 percent while Axis Bank
 declined 2.4 percent. 
    Reliance Industries fell 1.8 percent after a 3.1
percent surge on Wednesday. 
    Weak sentiment led to sell-off in blue-chip metal shares
such as Tata Steel, which ended 4.05 percent lower,
and Jindal Steel and Power which declined 4.1 percent.
    Cigarette maker ITC ended 1.13 percent lower on
concerns over a hike in taxation in the upcoming budget, which
might impact its volume, dealers said.      
    ABB fell 3.5 percent after the company reported a
74 percent fall in its October-December net profit at 167.7
million rupees. 
     Shriram Transport Finance Co Ltd slumped 7.5
percent after U.S. private equity firm TPG Capital 
raised $305 million by selling about half of its stake in the
company, at a discount to Wednesday's closing price.     
    Shares in Videocon Industries Ltd gained 5.8
percent after the consumer electronics and oil company said it
was in talks to sell its 10 percent stake in an oil and gas
block off the coast of Mozambique and Tanzania. 

 (Editing by Subhranshu Sahu)
FILED UNDER:

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Social Media

Social Media

Twitter to start tracking users' mobile apps  Full Article 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Forever21 in India

Forever21 in India

Forever21 sets sights on Indian cities, but please hold the hot pants  Full Article 

Japan Economy

Japan Economy

Japan inflation slows in October, output and spending show signs of recovery  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage