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Indian shares snap 4-day winning streak; Parliament vote key
December 3, 2012 / 11:14 AM / 5 years ago

Indian shares snap 4-day winning streak; Parliament vote key

* BSE index falls 0.18 pct; NSE ends 0.15 pct lower
    * Retail stocks buck the trend
    * Aviation shares gain on speculation over potential stake

    By Abhishek Vishnoi
    MUMBAI, Dec 3 (Reuters) - India's main indexes fell on
Monday, retreating from 19-month highs, as recent outperformers
such as HDFC Bank were hit by profit-taking on worries
over parliament's impending  vote on foreign direct investment
in multi-brand retail.
    However, shares in organised retailers such as Pantaloon
Retail India Ltd rose on speculation over the outcome
of Tuesday's vote.
    Dealers say the probability of a December rally will
increase if the vote goes in favour of the ruling Congress-led
alliance. If not, the newfound optimism around recently
announced reform measures is seen petering down.
    "If the FDI vote goes through, it will trigger another round
of rally in the markets," said V.K. Vijayakumar, investment
strategist at Geojit BNP Paribas. 
    If FDI in retail is cleared then the government will be in a
position to initiate a large number of other reforms, including
insurance and pension, he added. 
    The BSE index fell 0.18 percent, or 34.58 points,
to end at 19,305.32 after gaining 4.5 percent in the previous
four sessions.
    The broader NSE index fell 0.15 percent, or 8.90
points, to end at 5,870.95, finding resistance near the
psychologically important 5,900 level.
    HDFC Bank Ltd fell 2.4 percent on profit-taking after its
shares rose 6.35 percent in the previous three sessions.
    Among other recent outperformers, telecoms operator Bharti
Airtel also fell 1.8 percent after gaining 8.6 percent
in the previous three sessions.
    Stocks considered defensive such as ITC Ltd fell as
traders pared positions in favour of other sectors.
    ITC fell 0.8 percent, while Hindustan Unilever Ltd 
ended 0.3 percent lower.
    Among stocks that gained, retailer Pantaloon gained 9.5
percent ahead of the vote in parliament.
    Shares in India's Jet Airways rose 5.2 percent
after a report in Mint newspaper said the airline will soon seek
regulatory approval to tweak its ownership pattern to facilitate
a stake sale to Etihad Airways.  
    Shares in Maruti Suzuki India Ltd, India's largest
car maker, rose 1.1 percent after November sales grew 12.5
percent on year to 103,200 units, sustaining the recovery in
sales witnessed in October. 
    Utility vehicle maker Mahindra & Mahindra also
rose 1.1 percent after the company reported an 18 percent rise
in November sales. 
   For additional stocks on the move double click        
   FACTORS TO WATCH                                             
* Euro hits 3-week high against Swiss franc               
* Oil steadies around $111 on signs of China growth revival 
* Euro, shares rise on signs of Chinese growth       
* 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                                   
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 (Additional reporting by Manoj Dharra; Editing by Prateek

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