Indian shares down to pre-September reform levels ahead of earnings

Tue Apr 9, 2013 4:43pm IST

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Stocks

   

* 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        
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 (Additional reporting by Abhishek Vishnoi and Manoj Dharra;
Editing by Sunil Nair)
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