Indian shares fall on profit taking; bank stocks slump

Unitech

26/11/2013 11:20

* BSE index falls 0.87 pct; NSE ends 0.92 pct lower 
    * Indian banks' USD debt slumps on S&P's IDBI downgrade 
    * Stocks excluded from MSCI India index fall 
 
    By Abhishek Vishnoi 
    MUMBAI, Nov 26 (Reuters) - Profit-taking in blue-chips such 
as ICICI Bank hit Indian shares on Tuesday, reversing some of 
the previous session's gains on doubts about how quickly the 
Iranian nuclear accord would translate into higher supplies that 
pressure oil prices. 
    Lenders, who had been among the leading gainers on Monday, 
also fell after Standard & Poor's downgraded state-run IDBI Bank 
Ltd  IDBI.NS , sparking worries about more downgrades in the 
sector. 
    Caution also prevailed ahead of the expiry of November 
derivatives contracts on Thursday and July-September gross 
domestic product data on Friday.     
    "Valuations are not undemanding anymore and therefore I 
would be slightly cautious on markets at current levels," said 
Dipen Shah, head of Private Client Group Research, Kotak 
Securities. 
    "Upcoming GDP data would re-calibrate estimates but more 
importantly one should look out for reforms getting executed at 
ground level," he added. 
    The broader NSE index  .NSEI  fell 0.92 percent, or 56.25 
points, to end at 6,059.10, after gaining 2 percent on Monday. 
    The benchmark BSE index  .BSESN  fell 0.87 percent, or 
180.06 points, to end at 20,425.02. 
    Banks were among the day's leading decliners, with ICICI 
Bank Ltd  ICBK.NS  down 2.9 percent after gaining 5.3 percent on 
Monday. HDFC Bank Ltd  HDBK.NS  ended 1 percent lower. 
    IDBI Bank Ltd fell 1.5 percent after S&P downgraded the 
lender's rating to below investment grade citing expectations 
for weaker asset quality.  ID:nL4N0JB0QR  
    IDBI's offshore debt tumbled, with the yield on 2019 bonds 
widening 30 basis points.  ID:nL4N0JB0WX  
    Shares in other state-run lenders also fell, with their 
dollar-denominated bonds tumbling as well. State Bank of India 
 SBI.NS  ended 1.2 percent lower. 
     State-run oil companies fell on profit taking, with 
Hindustan Petroleum Corp  HPCL.NS  ending down 4.7 percent after 
surging 5.7 percent on Monday.  
    Indian Oil Corp  IOC.NS  fell 2.4 percent while Bharat 
Petroleum Corp  BPCL.NS  ended 6.5 percent lower. 
    Shares that will be excluded from MSCI indices, starting on 
Wednesday, also tumbled on the last day when investors could 
sell the shares. 
    Bank of India Ltd  BOI.NS  fell 5.2 percent while Canara 
Bank Ltd  CNBK.NS  ended 5.8 percent lower. Both will be 
excluded from MSCI India index  .MIIN00000PIN  after the close 
of markets on Tuesday..  ID:nL3N0IT18X  
    Among other MSCI exclusions, Wockhardt Ltd  WCKH.NS  fell 
4.3 percent while Unitech Ltd  UNTE.NS  slumped 8 percent. 
    However, Yes Bank Ltd  YESB.NS  rose 3.2 percent ahead of 
its inclusion in MSCI India index. 
         
   For additional stocks on the move double click  MEYE          
      
   FACTORS TO WATCH                                              
* Dollar weakens, pushes euro towards recent peaks        FRX/   
* Oil holds near $111, timing of Iran exports unclear      O/R   
* Asia stocks rise for 3rd day, oil prices stabilise MKTS/GLOB   
* Foreign institutional investor flows         INFII   INFII01   
* For closing rates of Indian ADRs                       INADR   
                        
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S.E. Asia....... .SO         Hong Kong... .HK  Taiwan.... .TWX   
Australia/NZ.... .AX         India....... .BO  China.....  .SS   
                         
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Stocks News US.. STXNEWS/US  Stocks News Europe     STXNEWS/EU   
                        
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Indian diary        IN/DIARY     Wall Street Week Ahead   .N/O   
Eurostocks Week Ahead  .EU/O                                     
                          
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 (Editing by Sunil Nair) 
 ((abhishek.vishnoi@thomsonreuters.com)(+91 22 61807225)(Reuters 
Messaging: abhishek.vishnoi.thomsonreuters.com@reuters.net)) 
 
Keywords: MARKETS INDIA SHARES/CLOSE