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    Indian shares drop for second day from record high; focus on fundamentals

    Picture of IDFC logoIDFC
    11/12/2013 11:08
    * BSE and NSE index both fall 0.39 pct 
    * High inflation in Nov set to keep pressure on RBI-Poll 
    * NTPC up after management assuages concerns over draft 
electricity rules 
 
    By Abhishek Vishnoi 
    MUMBAI, Dec 11 (Reuters) - Indian shares fell on Wednesday, 
continuing to retreat from record highs at the start of the 
week, as investors took profits in blue chips such as Tata 
Motors ahead of inflation data. 
    The report on consumer prices on Thursday will be followed 
by the wholesale price inflation on Monday, which will help set 
expectations ahead of the Reserve Bank of India's policy review 
on Dec. 18.  
    Consumer prices  INCPIY=ECI  were forecast to have risen an 
annualised 10 percent annually last month, a Reuters poll 
showed, barely changed from the 10.09 percent clocked in 
October.  ID:nL3N0JP2FD  
    Tackling inflation will be a key priority, RBI Governor 
Raghuram Rajan said on Wednesday, raising expectations that the 
central bank could raise interest rates for a third time in four 
months if prices remained high.  ID:nL3N0JQ1JC  
    "The only logical recourse in the market would be to 
consolidate at these levels as the focus shifts back to 
fundamentals which are not great at the moment,' said P. Phani 
Sekhar, fund manager at Angel Broking. 
    The benchmark BSE index fell 0.39 percent, or 83.85 points, 
to end at 21,171.41, retreating further from a record high of 
21,483.74 hit on Monday.  
    The broader NSE index fell or 0.39 percent, or 24.95 points, 
to end at 6,307.90, lower than its record high of 6,415.25, also 
on Monday.  
    Recent outperforming blue chips led the decliners for a 
second day. Tata Motors Ltd  TAMO.NS  fell 3.3 percent, while 
DLF Ltd  DLF.NS  ended 2.1 percent lower. 
    Among state-owned banks, State Bank of India Ltd  SBI.NS  
ended lower 2.5 percent, while Bank of Baroda Ltd  BOB.NS  fell 
2.4 percent. 
    Capital good makers fell on caution ahead of industrial 
output data due out on Thursday.  
    Larsen and Toubro Ltd  LART.NS  ended lower 1.8 percent, 
while Bharat Heavy Electricals Ltd  BHEL.NS  fell 2.1 percent.   
  
    However, NTPC Ltd  NTPC.NS  gained 2.4 percent after 
executives at the utility assured investors it would hold 
consultations with regulators after draft guidelines on 
electricity were seen hurting returns in the sector and sent its 
shares down 11.4 percent on Tuesday.  ID:nL3N0JQ1NZ  
    United Breweries Ltd  UBBW.NS  gained 2 percent after the 
Netherlands' Heineken NV  HEIN.AS  became the largest 
shareholder in the company. Its stake inched past that of liquor 
baron Vijay Mallya.  ID:nL3N0JQ128  
    Coal India Ltd  COAL.NS  ended 1.1 percent higher after 
earlier falling as much as 3.4 percent after the company said it 
will take appropriate legal action on the competition 
regulator's fine of 17.7 billion rupees.  ID:nWNBS008X6  
     
   For additional stocks on the move double click  MEYE          
      
   FACTORS TO WATCH                                              
* Yen gains for second day as stocks fall                 FRX/   
* Brent holds above $109; spread with WTI eyed             O/R   
* Asian shares lose altitude, bonds underpinned      MKTS/GLOB   
* Foreign institutional investor flows         INFII   INFII01   
* For closing rates of Indian ADRs                       INADR   
                        
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