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Indian shares snap 4-day winning streak on profit-taking; election results key
May 14, 2014 / 10:59 AM / 4 years ago

Indian shares snap 4-day winning streak on profit-taking; election results key

* BSE index falls 0.24 pct; NSE ends flat
    * Foreign investors step up buying of Indian shares
    * Dr Reddy's extends falls; Morgan Stanley, BofA downgrade
    * State-run banks gain on cbank panel's report

    By Abhishek Vishnoi
    MUMBAI, May 14 (Reuters) - Indian shares retreated on
Wednesday from record highs hit in the prior session, snapping a
four-session winning streak as investors booked profits in
blue-chips such as HDFC Bank ahead of the release
election results on Friday.
    Indian shares have surged on widespread expectations that
the opposition Bharatiya Janata Party, and its prime minister
candidate Narendra Modi, are set to win a majority in the
country's elections when results are unveiled on Friday.
    India's NSE index has gained 21.50 percent since
Sept. 13 when Modi was named as BJP's prime ministerial
candidate, with foreign investors buying heavily.
    Their net purchases accelerated over the previous three
sessions, reaching a net 63.39 billion rupees ($1.06 billion)
when including index futures. 
    "What we as investors in India crave is stability and
certainty. A result north of 240 seats for Modi would likely
deliver him the PM's office and a host of willing coalition
partners - in other words a stable government," Jonathan
Schiessl, Asian equities specialist at Ashburton Investments in
Jersey, said in an email to Reuters.
    "Much is hanging on this election result, not only for
investors in the India story," Schiessl added.
    The benchmark BSE index fell 0.24 percent, or 56.11
points, to end at 23,815.12 after hitting a record high of
24,068.94 on Tuesday.
    The broader NSE index ended flat at 7,108.75, after
touching an all-time high of 7,172.35 a day earlier.
    Among blue-chips, HDFC Bank declined 1.6 percent after
making a life high of 800 rupees on Tuesday, while Reliance
Industries ended 1.7 percent lower.
    Bharat Heavy Electricals slipped 1.2 percent after
surging 10.2 percent on Tuesday, while Larsen & Toubro 
ended 1.1 percent lower.
    Dr. Reddy's Laboratories Ltd dipped 3.5 percent
adding to its 4.1 percent fall on Tuesday as the drugmaker
continues to be hit by disappointment over its January-March
    Nestle India Ltd fell 2 percent after the company
reported lower-than-expected earnings in the January-March
    However, state-run banks gained after a committee appointed
by the Reserve Bank of India proposed on Tuesday the Indian
government should cut its stakes in state banks to below 50
    State Bank of India rose 0.3 percent, Oriental Bank
of Commerce Ltd gained 3.8 percent, Punjab National
Bank rose 4.3 percent while Canara Bank 
surged 10.5 percent higher. 
    Tata Steel gained 5.9 percent, after earlier
hitting its highest level since July 2012, ahead of its
Jan-March results later in the day.
   For additional stocks on the move double click        
   FACTORS TO WATCH                                             
* Euro inches higher, sterling eyes                      
* Brent holds above $109 on outlook for U.S. oil stocks   
* Focus on BoE, highlights contrast with dovish ECB 
* 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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