Indian shares slip to almost 1-month closing low; outlook grim
03/06/2013 11:56
* BSE index falls 0.76 pct; NSE ends 0.78 pct lower * Auto stocks slump on weak sales in May * Infosys shares jump on founder Murthy's return as chairman By Abhishek Vishnoi MUMBAI, June 3 (Reuters) - Indian shares fell for a second straight session on Monday to their lowest close in nearly a month as Sun Pharmaceutical Industries Ltd SUN.NS dropped on reports of its talks to buy Sweden's Meda AB, while Maruti Suzuki India Ltd MRTI.NS slumped after sales declined 14.4 percent in May. Shares were also hit by an HSBC survey that showed factory output shrank in May for the first time in over four years, suggesting the economy remained frail at the start of the new fiscal year. ID:nS7N0BT02X The weak PMI reading added to already rising concerns the central bank would hold off cutting interest rates this month due to inflationary pressures and a wide current account deficit. ID:nL3N0EC1C2 Domestic shares also tracked weak global shares in the face of continued uncertainty over how much longer the current U.S. stimulus would continue and factory activity data that underscored the fragility of China's economy. MKTS/GLOB "Correction may continue in the short term as economic indicators weaken but sharp dips should be utilised to buy," said G. Chokkalingam, executive director and chief investment officer of Centrum Wealth Management. The benchmark BSE index .BSESN fell 0.76 percent, or 149.82 points, to 19,610.48, marking its lowest close since May 3. The broader NSE index .NSEI fell 0.78 percent, or 46.65 points, to 5,939.30, marking its lowest close since April 30 and ending below the key level of 6,000 for the second consecutive session. The rupee's INR=D2 moves are being closely watched as any further weakness is likely to trigger concerns about foreign fund inflows and raise issues about funding the current account deficit, traders said. Sun Pharma fell 2.5 percent on media reports the company is in talks to buy Sweden's Meda AB MEDAa.ST for $5 billion to $6 billion to boost its generics business in developed markets. Maruti Suzuki India fell 2.3 percent after the automaker's sales declined 14.4 percent in May compared with a year earlier. ID:nL3N0EF0TY Bajaj Auto Ltd BAJA.NS dropped 3.4 percent after it said in a statement that its motorcycle sales declined 5 percent in May. ID:nWNBS0041F Hero MotoCorp Ltd HROM.NS fell 3.8 percent after it said two-wheeler sales in May remained almost flat at 557,890 units. ID:nWNBS0041P Suzlon Energy Ltd SUZL.NS fell about 10 percent to a record low, a fifth consecutive session drop, after the wind turbine maker said its January-March net loss widened from a year earlier. ID:nL3N0EC0WW However, among stocks that gained, Infosys Ltd INFY.NS rose 4.3 percent on bets the return of founder and former chairman N.R. Narayana Murthy as executive chairman would improve the company's outlook. ID:nL3N0EF0SL CRISIL Ltd CRSL.NS ended 20 percent higher after McGraw Hill Financial Inc MHFI.N , which owns Standard & Poor's rating agency, said it would make a voluntary open offer to raise its stake in the company to 75 percent in a deal worth about $340 million. ID:nL3N0EF0WA For additional stocks on the move double click MEYE FACTORS TO WATCH * Euro rises on PMI data, dollar resumes fall against yen FRX/ * Brent dips under $100 on China data O/R * Shares tumble, Bunds firm as volatility reigns MKTS/GLOB * Foreign institutional investor flows INFII INFII01 * For closing rates of Indian ADRs INADR ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ STXNEWS/AS Japan....... .T S.Korea... .KS S.E. Asia....... .SO Hong Kong... .HK Taiwan.... .TWX Australia/NZ.... .AX India....... .BO China..... .SS OTHER MARKETS: Wall Street .... .N Gold ....... GOL/ Currency.. FRX/ Eurostocks..... .EU Oil ........ O/R JP bonds... JP/ ADR Report ..... ADR/ LME metals. MET/L US bonds.. US/ Stocks News US.. STXNEWS/US Stocks News Europe STXNEWS/EU DIARIES & DATA: Indian Data Watch ID:nINDATA Asia earnings diary ASIA/EQTY U.S. earnings diary RESF/US European diary WEU/QTY Indian diary IN/DIARY Wall Street Week Ahead .N/O Eurostocks Week Ahead .EU/O TOP NEWS: For top Asian company news, double click on: urn:newsml:reuters.com:*:nTOPEQA U.S. company news TOP/EQU European company news TOP/EQE Forex news TOP/FRX Global Economy news TOP/MACRO Technology news TOP/TECH Telecoms news TOP/TELCO Media news TOP/MEDIA Banking news TOP/FIN Politics/General TOP/G Asia Macro dataRecent news on Crisil
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