* NSE index down 0.16 pct, BSE 0.14 lower
* Infosys falls on promoter exit fears
* Global overhang persists - analyst
By Tanvi Mehta
June 9 Indian shares fell on Friday, with
Infosys dragging benchmark indexes lower following a report its
founders were preparing to exit the IT bellwether, while the
prospects of a hung parliament in the UK also hurt sentiment.
Infosys was trading 1.62 percent lower, after falling as
much as 3.5 percent, despite the company denying a Times of
India report that said the company's promoters were looking to
sell their entire stake.
Global market sentiment took a hit after British elections
left no single party with a clear claim to power ahead of talks
to exit the European Union, sideswipe investors who had already
weathered major risk events in the United States and Europe.
"The overhang of global cues will definitely be there on
markets across the world," said Devon Chokes, promoter, KKR
Chokes Investment Managers.
Both the BSE and NSE indexes were headed for their first
weekly fall in five. Analysts have been advising investors to be
cautious in the near term after a record-breaking rally in the
indexes over the recent past. Both the indexes had hit fresh
record highs on Tuesday.
"That's why investors are not pumping in money now at this
stage, (but are) sitting on cash," Chokes added.
India is due to post inflation data on Monday amid rising
hopes for a central bank rate cut later this year.
The broader NSE index was down 0.16 percent at
9,632.15 as of 0621 GMT, and down 0.29 percent for the week.
The benchmark BSE index was 0.14 percent lower at
31,168.54 and down 0.34 for the week.
Infosys pulled down other IT stocks and the Nifty IT index
fell as much as 1.68 percent to its lowest since May
18. Infosys lost 2.4 percent while Tech Mahindra Ltd
fell 2.6 percent.
Meanwhile, embattled mobile carrier Reliance Communications
continued its slide, falling as much as 3.2 percent.
The company on Wednesday pushed back against Moody's and Fitch,
disagreeing with the ratings agencies' downgrade.
(Reporting by Tanvi Mehta in Bengaluru; Editing by Vyas Mohan)