* BSE index falls 1.09 pct; NSE ends 1.16 pct lower
* U.S. budget setback hits shares
* Bharti Airtel drops on federal police charges
By Abhishek Vishnoi
MUMBAI, Dec 21 Indian shares ended lower on
Friday, marking a second week of declines, as lenders were hit
by profit-taking, while Bharti Airtel fell after federal police
filed charges as part of a probe into alleged corruption in
allocation of mobile airwaves.
The market also tracked weak global shares after a
Republican proposal to deal with a U.S. fiscal crunch failed to
get enough support, deepening uncertainty over the U.S. can
avert the "fiscal cliff" of automatic spending cuts and tax
increases set to start Jan. 1.
Indian shares are expected to remain volatile next week amid
uncertainty around the U.S. "fiscal cliff" and as markets head
into the last derivatives expiry of 2012 on Thursday.
"Markets are hoping for a solution to the U.S. fiscal cliff
issue because if a solution is not reached, it can impact
sentiment negatively," said Dipen Shah, Head of Private Client
Group Research, Kotak Securities.
"We expect the issue to be resolved and the same can
provide relief in short term," he added.
The benchmark BSE index fell 1.09 percent, or
211.92 points, to end at 19,242, marking its biggest single-day
percentage fall since Oct. 30, and ending 0.39 percent lower for
The broader NSE index shed 1.16 percent, or 68.70
points, to end at 5,847.70, closing below the psychologically
key 5,900 level, also ending down 0.54 percent for the week.
Bharti Airtel shares ended 3 percent lower after
India's federal police filed charges against the company and
Vodafone Group Plc's India unit on Friday as part of a
probe into alleged corruption in the allocation of mobile phone
airwaves a decade ago.
Banking shares such as State Bank of India fell 2
percent on profit-taking, after gaining 9.7 percent in Decmeber,
as of Thursday's close.
Mahindra & Mahindra shares ended 1.6 percent lower
on earnings concerns, after the automaker said it would buy
Navistar International's 49 percent stake in its two
joint ventures, in a $33 million deal.
Mahindra automotive president Pawan Goenka told analysts on
Thursday that M&M's board has given executives three years to
bring the two companies to profitability.
Blue Star shares fell 2.5 percent, while Voltas
shares lost 3.9 percent after Nomura said it has come
away "with extremely negative takeaways" for the Indian heating,
ventilation and air conditioning (HVAC) market after meeting a
Blue Star executive in charge of the segment.
However, among gainers, Mahindra and Mahindra Financial
Services Ltd ended 1.3 percent higher after the board
approved a stock-split in the ratio of five new shares for ever
Shares is Adani Enterprises Ltd ended 0.7 percent
higher after earlier gaining as much as 5 percent in early trade
after its promoters set the floor price for a share sale at 282
rupees per share.
For additional stocks on the move double click
FACTORS TO WATCH
* Euro falls, yen rebounds as U.S. budget talks stall
* Brent slips below $110 as U.S. fiscal talks stall
* U.S. budget setback hits shares, euro
* 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.....
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
Indian Data Watch Asia earnings diary
U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
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 <ECONASIA
(Additional reporting by Manoj Dharra; Editing by Sunil Nair)