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India's NSE index closes near 1-mth low on Fed worries; macro data key
November 11, 2013 / 11:38 AM / 4 years ago

India's NSE index closes near 1-mth low on Fed worries; macro data key

* NSE ends 1 pct lower; BSE index falls 0.85 pct
    * Caution ahead of inflation, factory data later in the week
    * Cairn India shares rise tracking crude gains, rupee fall
    * Apollo shares rise on U.S. judge ruling

    By Abhishek Vishnoi
    MUMBAI, Nov 11 (Reuters) - India's NSE index fell 1 percent
on Monday to its lowest close in nearly a month after
better-than-expected U.S. jobs data revived concerns the Federal
Reserve would start tapering its monetary stimulus as early as
next month.
    A surprise surge in U.S. jobs growth heightened worries
boosting the dollar against the euro, yen and the rupee while
Asia shares fell to their four-week lows. 
    Selling worth of over 10 billion rupees ($159.4 million) of
index futures by foreign funds on Friday also weighed on the
sentiment, raising worries about a potential slowdown in their
buying volume ahead of key macroeconomic data later this week.
    "Fed tapering is aiding the concerns of heavy redemption in
the local market. Inflation would, however, be supportive," said
Vivek Mahajan, head of research at Aditya Birla Money.   
    India will report consumer price inflation and industrial
output data on Tuesday, and wholesale price inflation on Friday.
    Overseas funds have been buyers of Indian equities for the
last 25 consecutive sessions with total inflows so far in 2013
now at almost $16.7 billion, which helped the benchmark BSE
index hit a life high earlier this month.
    "There is some caution ahead of state elections but Fed
tapering concerns are overdone. I expect the inflation data to
support the markets later in the week," said Deven Choksey,
managing director at K R Choksey Securities.
    The broader NSE index fell 1.01 percent, or 61.95
points, to 6,078.80, marking its lowest close since Oct. 17.
    The BSE index fell 0.85 percent, or 175.19 points,
to 20,490.96, marking its fifth consecutive day of decline.
    Blue chips were among the worst hit, with Larsen and Toubro
Ltd falling 3.2 percent and Reliance Industries Ltd
 losing 1.4 percent.
    Tata Motors Ltd fell 1.8 percent after operating
profit margins at key unit Jaguar Land Rover Ltd (JLR)
 for the July-September quarter missed estimates when
adjusted for one-time tax incentives. 
    India's Tata Chemicals Ltd fell 1.5 percent after
its September-quarter consolidated net profit nearly halved to
1.34 billion rupees 
    Central Bank of India Ltd shares fell 4.2 percent
after posting a net loss of 15.09 billion rupees for the
September quarter. 
    Reliance Infrastructure Ltd fell 2.2 percent ahead
of its July-September results later in the day while Reliance
Communications Ltd fell 2.6 percent a day ahead of its
quarterly results.
    Indian Oil Corp Ltd slumped 4.8 percent while Coal
India Ltd ended 0.7 percent lower after the government
revived plans to sell stakes in the state-owned companies.
 
    Shares of Apollo Tyres rose 4.1 percent on a
favourable U.S. court ruling. 
    
   For additional stocks on the move, double click       
     
   FACTORS TO WATCH                                             
* Dollar pauses after strong gains, euro struggles       
* Oil above $105 after Iran talks end without deal        
* Asian shares fall on Fed tapering worries         
* 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.....TWX] 
Australia/NZ....        India.......  China..... 
                        
   OTHER MARKETS:                                               
Wall Street ....         Gold ....... Currency..FRX/] 
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                                   
                         
   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      <ECONASIA 

 (Editing by Gopakumar Warrier)

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