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Indian shares fall on profit-taking; Adani group stocks hit
December 20, 2012 / 11:08 AM / 5 years ago

Indian shares fall on profit-taking; Adani group stocks hit

* BSE index falls 0.11 pct; NSE ends 0.22 pct lower
    * Steel companies extend gains on China coke duty cut
    * Winter session ends; RBI policy, budget next on investors'
radar

    By Abhishek Vishnoi
    MUMBAI, Dec 20 (Reuters) - Indian shares fell on Thursday on
profit-taking, led by declines in auto stocks such as Tata
Motors, while Adani group stocks were also hit after gaining
recently on expectations Narendra Modi would win a fourth
successive term as chief minister of India's Gujarat state.
    Concerns that a strong victory by the opposition in Gujarat
elections might affect the bargaining position of the government
at the centre to push forward its reforms agenda, also added to
the anxiety, dealers said.
    Narendra Modi looked set to win a fourth successive term as
the chief minister of Gujarat, a victory that could launch the
prime ministerial ambitions of one of the country's most popular
but controversial leaders. 
    With parliament's winter session ending on Thursday, the
rally's extension would not depend on how well RBI manages
slowing growth and sticky inflation.
    "The credit policy is something we are looking forward and
then the budget session will keep markets busy," said Vaibhav
Sanghavi, director at Ambit Capital.
    In the medium term, the outlook is bullish and the coming
two years will be good for equities, he added.
    The benchmark BSE index fell 0.11 percent, or 22.08
points, to end at 19,453.92, after marking its near 2-week
closing high on Wednesday.
    The broader NSE index fell 0.22 percent, or 13.20
points, to end at 5,916.40, although closing above the
psychologically important 5,900 level.
    Tata Motors fell on profit-taking after rising 7.9
percent in the previous five sessions after
stronger-than-expected November sales at Jaguar Land Rover
reduced concerns about the outlook for the key unit of the
Indian auto maker. 
    Capital goods stocks such as Larsen & Toubro fell
on worries of a slowdown in order bookings, dealers said.
    Adani Group stocks fell on profit-taking after gaining
recently on expectations Narendra Modi would win a fourth
successive term in India's Gujarat state. 
    Adani Enterprises Ltd fell 7.1 percent ahead of
its planned sale of 23 million shares on Friday. 
    Adani Ports and Special Economic Zone Ltd ended
3.6 percent lower, after rising 11.6 percent in December as of
Wednesday's close, while Adani Power Ltd shares fell 5
percent after gaining 29.2 percent this month.
    Shares in Shasun Pharmaceuticals fell 6.9 percent
after Vertex Pharmaceuticals warned on Wednesday its
hepatitis C drug Incivek, which is used in conjunction with two
other products, can cause serious, potentially fatal skin
reactions.    
    Shasun has a long-term agreement with Vertex for supply of
active pharmaceutical ingredient for the Hepatitis C drug. 
    However among stocks that gained, Tata Steel 
gained 1.8 percent, JSW Steel ended 2 percent higher
after China said it will scrap a 40 percent export duty on
metallurgical cokefrom next year. 
    The move is expected to weigh on prices on metallurgical
coke, giving steel firms access to cheaper imports from China. 
    Tata Consultancy Services ended 1.6 percent higher,
gaining for a second day after its management reiterated its
positive forecast for fiscal years 2013 and 2014 in a meeting
with analysts on Monday.        
    Multi Commodity Exchange of India gained 0.9
percent, while Financial Technologies rose 2.7 percent
after the company said it has received the final go-ahead from
the markets regulator Securities and Exchange Board of India
(SEBI) for starting operations in MCX Stock Exchange.
 
    Maruti Suzuki shares gained 0.7 percent on bets a
steep depreciation in the yen will boost earnings by
reducing the costs of imports from Japan. 
    
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Yen rises on profit-taking after BOJ, gains limited     
* Brent below $110, stalled US fiscal talks cloud outlook  
* Shares slide as tension rises over U.S. budget     
* 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      <ECONASIA 

 (Additional reporting by Manoj Dharra; Editing by Sunil Nair)

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