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3 years ago
Indian shares post second weekly decline; flows, earnings awaited
October 1, 2014 / 11:10 AM / 3 years ago

Indian shares post second weekly decline; flows, earnings awaited

* BSE index falls 0.23 pct; NSE ends 0.24 pct down
    * IT exporters gain; stronger dollar to aid margins
    * Consumer discretionary stocks top gainers in BSE large
caps

    By Abhishek Vishnoi
    MUMBAI, Oct 1 (Reuters) - Indian shares fell on Wednesday,
with blue chips such as ITC Ltd retreating, as traders
refrained from building positions ahead of an extended holiday
period, while foreign investor sales also weighed on sentiment.
    Markets will be shut from Thursday until Monday for public
holidays and re-open for trading on Tuesday.
    Investors thus opted for caution, given lingering global
risk factors such as the continued civil unrest in Hong Kong and
rising worries about earlier-than-expected U.S. rate hikes.
    Adding to the caution, overseas investors sold stocks worth
of 4.86 billion rupees ($78.7 million) on Tuesday, offloading
shares in five out of past six sessions. 
    Foreign investors have been integral to Indian shares
marking record highs on Sept. 8 and any signs of selling tends
to spark concerns.
    July-September earnings reports would also be key for
near-term direction. Infosys Ltd kicks off the
earnings season with quarterly results on Oct. 10.
    "In the near term, geo-political tensions, economic growth
in China and eurozone will take most of the attention of the
market. Quarterly results will start pouring in a couple of
weeks and will impact individual stocks," said Dipen Shah, head
of private client group research at Kotak Securities.
    The benchmark BSE index fell 0.23 percent, or 62.52
points, to end at 26,567.99, also falling 0.22 percent for the
week.
    The broader NSE index lost 0.24 percent, or 19.25
points, to end at 7,945.55, while marking a weekly decline of
0.29 percent.
    Blue-chips led the declines. ITC fell 1.7 percent, while
Reliance Industries ended 2 percent lower.
    HDFC Bank Ltd fell 0.5 percent and Indusind Bank
Ltd lost 3.2 percent.
    Non-banking financial companies (NBFCs) fell on worries the
central bank may tighten norms for bad loans. The Reserve Bank
of India on Tuesday said changes in the NBFC regulatory
framework would be introduced by end of this month.
 
    Shriram Transport Finance Co Ltd fell 2.4 percent
and Mahindra and Mahindra Financial Services Ltd ended
down 0.6 percent.
    Maruti Suzuki India, India's largest carmaker by
sales, fell 3 percent after its exports fell by 28.2 percent in
September, surprising some investors. 
    However, two-wheeler maker Hero MotoCorp gained
1.3 percent after its September sales rose by 30 percent,
beating some analysts' estimates. 
    Consumer discretionary shares were top gainers among BSE
large-cap stocks. Traders said consumer good companies
are seen as safer bets given the expected rise in disposable
incomes. 
    Berger Paints India Ltd ended up 5.5 percent, Bata
India rose 5.1 percent and pizza maker Jubilant
Foodworks Ltd surged 3.9 percent.
    Also, software exporters gained on hopes weakness in
currencies against U.S. dollar would aid margins from overseas.
 
    Tata Consultancy Services gained 1.4 percent, while
Infosys ended up 2.7 percent.
    
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Dollar scales 6-yr peak vs yen, euro struggles         
* Oil edges up from more than 2-year low, glut caps gains 
* Lacklustre factory data hits world 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 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      

 (Editing by Anand Basu)

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