Indian shares down to pre-September reform levels ahead of earnings
* BSE ends 1.2 pct down, NSE 0.9 pct lower * Foreign funds net sellers for a fourth successive session * Credit Suisse upgrades NTPC, Ambuja Cements By Subhadip Sircar MUMBAI, April 9 (Reuters) - Indian shares extended losses for a fifth session on Tuesday with blue-chips such as Infosys continuing to reel on concerns that foreign investors are paring their holdings ahead of what are expected to be lacklustre earnings reports this month. Both of India's key indices are now at their lowest closing levels since Sept. 13, 2012, when the government raised diesel prices, kickstarting bold reforms that included opening up the aviation and retail sectors further to foreign investors. After strong purchases last year and much of this year, foreign funds have now sold Indian equities for four consecutive sessions as of Monday for a net total of $137 million, according to regulatory data. India VIX, which measures the cost of protection via options and is seen by some investors as a "fear" gauge, added 0.3 percent to 16.82, marking a fifth session of advances and reflecting the rising volatility ahead of earnings. "It is certainly looking weak as FIIs remain net sellers," said Paras Adenwala, Managing Director & Principal Portfolio Manager at Capital Portfolio Advisors, referring to inflows from foreign institutional investors. "There is no doubt about it. All attempts to recover are getting sold into. Today's selling was vicious, which indicates there is a lot of pressure at higher levels." The BSE index declined 1.15 percent, or 211.30 points, to close at 18,226.48, its lowest close since Sept. 13. The broader 50-share NSE index fell 0.86 percent, or 47.85 points, to close at 5,495.10, also its lowest close since Sept. 13, although the so-called Nifty had first reached that milestone on Friday. The NSE cash market turnover was lower than the 30-session average. Oil & Natural Gas Corp fell 2.9 percent, while Infosys Ltd fell 2.3 percent, extending losses for a fourth session on worries that earnings due Friday may disappoint. Blue-chips tend to fall the most during a period of worries about foreign investor selling given their higher relative share of overseas shareholdings. Indian lenders also fell ahead of key macroeconomic data later in the week, which will set the tone ahead of the central bank's May 3 policy review. State Bank of India fell 2.2 percent, while Punjab National Bank fell 2.3 percent. Wipro Ltd slumped 12.3 percent in its first trading session as a standalone IT stock after the company split off its other businesses into a separate unit. However, Cairn India Ltd rose 1.8 percent after the company reported an oil discovery in the north-western state of Rajasthan. Tata Consultancy Services ended 1.1 percent higher after the company said it would buy privately-held Alti SA of France for 75 million euros ($98 million). NTPC Ltd. ended 0.5 percent higher, while Ambuja Cements Ltd. closed 0.4 percent up after Credit Suisse upgraded both stocks to 'outperform'. FACTORS TO WATCH * Dollar stalls but rise to 100 yen seen inevitable * Oil rises to $105 on lower China inflation * Yen's slide stalls, US earnings lift stocks * 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 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 (Additional reporting by Abhishek Vishnoi and Manoj Dharra; Editing by Sunil Nair)
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DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.
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