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Indian shares snap 6-day winning streak; L&T falls
November 8, 2012 / 11:22 AM / in 5 years

Indian shares snap 6-day winning streak; L&T falls

* BSE ends down 0.3 pct; NSE falls 0.37 pct
    * U.S. fiscal problems weigh
    * Tata Motors sees biggest single-day gain since June 15

    By Abhishek Vishnoi
    MUMBAI, Nov 8 (Reuters) - India's main indexes fell on
Thursday, retreating from near 4-1/2 week highs, as recent
out-performers such as Larsen & Toubro were hit by profit-taking
on worries about budget negotiations in the United States and
about Europe's economic troubles.
    However, Tata Motors rose 5.4 percent, marking its
biggest single-day gain since June 15, a day after the auto
maker reported July-September margins at its key Jaguar Land
Rover (JLR) subsidiary improved from a year ago. 
    Shares however recovered from earlier falls of as much as
0.9 percent on growing opinion that worries over the U.S. fiscal
cliff and slowing Europe makes markets like India a better place
to invest if government follows up on its policy actions.
    "Market were worried about fiscal cliff as its getting more
attention than before," said Vaibhav Sanghavi, Director at Ambit
    With the quarterly earnings season nearing its end, focus
would shift back to government policy action and sustained
capital inflows, added Sanghavi.
    India's BSE index fell 0.3 percent, or 56.15
points, to end at 18,846.26, after gaining 2.55 percent over the
previous six sessions, till Wednesday.
    The 50-share NSE index fell 0.37 percent, or 21.35
points, to 5,738.75, falling for the first time in the last
seven trading sessions.
    Housing Development and Finance Corporation 
settled 0.7 percent lower on profit booking, after hitting a
52-week high of 805.85 rupees on Wednesday.
    Shares in India's United Spirits rose 3.37
percent, after CNBC TV 18 reported top officials at the Indian
liquor maker were expected to meet Diageo on Thursday to
continue discussing a potential stake sale, citing unidentified
    Larsen & Toubro shares ended 2 percent lower on
risk aversion. Credit Suisse also downgraded the stock on
Wednesday to 'underperform' from 'neutral' on concerns about
deteriorating order flow mix and rising working capital cycle,
which could impact margins and cash generation. 
    Sun Pharmaceutical Industries ended 0.5 percent
lower after reporting a 46.5 percent drop in quarterly net
profit after it set aside 5.84 billion rupees towards a possible
compensation in a patent dispute case. 
    Drugmaker Cipla ended 0.74 percent lower after it
cut prices of three cancer drugs between 50 percent and 64
percent with immediate effect. 
    IPCA Laboratories Ltd fell 6.3 percent after it
said shipments to the U.S. from one of its units would stop
until issues related to compliance are resolved. 
    However, State Bank of India rose 1.1 percent on
hopes of better-than-expected results and lower non-performing
loans in the September quarter, with results due on Friday.  
    The bank's chairman, Pratip Chaudhuri, said SBI's September
quarter non-performing asset position was looking better than
that of the June quarter. 
    L&T Finance shares ended 5.4 percent higher after
a senior ministry official said India hopes to have new banking
licenses by the end of 2012/13 fiscal year. 
    For additional stocks on the move double click  
   FACTORS TO WATCH                                             
* Euro falls to two-month low versus dollar               
* Brent rises above $107 after slump; Europe back          
* Euro under pressure ahead of ECB meeting           
* 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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