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Indian shares end lower; consumer stocks hit
July 2, 2012 / 11:56 AM / 5 years ago

Indian shares end lower; consumer stocks hit

By Abhishek Vishnoi
    MUMBAI, July 2 (Reuters) - Indian shares fell on Monday,
snapping four days of gains, due to profit booking in the fast
moving consumer goods stocks, led by declines in cigarette maker
ITC and the country's largest consumer goods maker,
Hindustan Unilever. 
    Traders attributed the fall to churning of money from the
"expensive defensive" to "cheap and rate beneficiaries" like
bank and infrastructure shares.
    Markets are now also awaiting further news on the progress
of the monsoon as well as measures from the government to revive
    "Profit booking after a big rally on Friday got exacerbated
due to bad cues on monsoon and oil prices," said Ambareesh
Baliga, chief operating officer at Way2Wealth Brokers Pvt Ltd.
    "Those who have missed on rally can buy on dips provided
they keep ears open to (news on) monsoons and steps from finance
    India's crucial monsoon rains were below average last week
and failed to cover as much of the country as they should have,
the weather office said on its website, fanning concerns about
output of crops despite reassurances from weather officials.
    India's main 30-share BSE index fell 0.2 percent to
17,398.99 points, after Friday's 2.6 percent rise after European
leaders agreed to create a single supervisory body for euro
    The broader 50-share NSE index fell 0.01 percent to
5,278.60 points, even as MSCI's broadest index for Asian shares
outside Japan rose 0.5 percent.
    A raft of upgrades on Indian equities has helped local
shares notch up gains in recent sessions.
    Morgan Stanley upgraded Indian stocks on Friday to
"equalweight" after being "underweight" since the first quarter
of 2011. 
    Morgan Stanley's upgrade came after Deutsche Bank and
J.P.Morgan upgraded Indian stocks to "overweight" from
    Dealers said reports of a higher value added tax on
cigarettes by the Uttar Pradesh government weighed on ITC
    Hindustan Unilever also ended 1.7 percent lower.
    IT stocks were also under pressure after Macquarie
downgraded the sector to "underweight" from "overweight" citing
demand concerns. 
    Tata Consultancy Services fell 1.4 percent, while
Infosys ended 0.4 percent lower.
    Shares in Maruti Suzuki India rose 0.8 percent, bucking the
weak trend seen among peers, after reporting 20 percent growth
in vehicle sales for the month of June. 
    Shares in Tata Motors fell 1.9 percent after sales in June
declined by 3 percent. 
    Shares in Adani Enterprises rose 5.7 percent after
its Australian chief said it aims to start building its first
Australian coal mine in July 2013, at an expected cost of around
$4 billion, so it can produce 23 million tonnes a year in its
first year. 
    FACTORS TO WATCH                                            
* Euro falls on Finland's ESM comments                  
* Brent crude oil falls more than $2 on factory data      
* European shares extend rally on EU deal           
* Foreign institutional investor flows        
* For closing rates of Indian ADRs                      
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 (Editing by Anand Basu)

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