Thu Dec 22, 2011 12:15am EST
* Sensex, Nifty down about 0.5 pct each
* Infosys, TCS, Wipro fall after Oracle results
* Banks’ shares ease after Wednesday’s rally
(Updates to mid-morning)
NEW DELHI, Dec 22 (Reuters) – Indian shares fell more
than 1 percent on Thursday after a sharp rebound in the previous
session, weighed down by lingering concerns over slowing
domestic growth and government policy inaction.
Shares in software services exporters including Infosys Ltd
and Tata Consultancy Services fell after
dismal results from Oracle Corp, the world’s No.3
software maker, stoked fears of a slowdown in global technology
spending.
“The market is tracking global cues and also there are
continuing headwinds at home, which is leading to a lot of
negative sentiment building,” said K.K. Mital, head of portfolio
management services at Globe Capital Market Ltd in New Delhi.
“I expect the market to remain rangebound with a negative
bias in the coming days.”
At 10:30 a.m. (0500 GMT), the main 30-share BSE index
was down 0.58 percent at 15,594.98, with 20 of its
components in red. It fell as much as 1.2 percent in early
trade.
The index had gained 3.4 percent on Wednesday to its highest
close since Aug. 29, snapping five sessions of losses.
It is down nearly a quarter this year, hit by foreign fund
outflows, and is the world’s worst-performing major equity
market. Foreign funds have been net sellers of more than $500
million worth of Indian shares so far in 2011, compared with
record net buys of more than $29 billion in 2010.
Infosys shares were down 2.5 percent at 2,676.50 rupees,
while Tata consultancy fell 1.5 percent to 1,141.80 rupees.
Third-ranked software exporter Wipro was down about 2
percent at 399 rupees.
The stocks have outperformed the broader market in the
current quarter, helped by a sharp fall in the local rupee
currency against the dollar. The companies get most of their
revenue from the United States and Europe, but bulk of their
spending is in the local currency.
“Currency is there in the stock price already, but what is
not there in the price is the slowdown,” said Ambareesh Baliga,
chief operating officer at Way2Wealth Securities.
Banking stocks eased after Wednesday’s rally.
Sector leader State Bank of India was down 1.1
percent after gaining 2.9 percent in the previous session, while
No.2 ICICI Bank fell 2.2 percent after surging 7.5
percent on Wednesday.
Shares in Reliance Industries, India’s
most-valuable firm, were down 0.6 percent at 743.35 rupees.
Reliance said it bought a minority stake in Terra Power, a
U.S.-based nuclear-technology design and engineering company.
In the broader market, there were 748 decliners for 504
gainers on total volume of 119 million shares.
The 50-share NSE index was down 0.51 percent at
4,669.25.
Asian shares fell as doubts remained over how much of the
funds banks raised from an inaugural long-term European Central
Bank tender will actually flow into struggling euro zone
economies and help restore confidence.
STOCKS ON THE MOVE
* Yes Bank rose 1.5 percent to 254.15 rupees after
the lender said it raised savings deposit rates to 7 percent
from 6 percent for domestic customers with immediate effect.
* Thinksoft Global Services Ltd jumped as much as
12.6 percent after the company said it signed a 50-million-rupee
contract with the Reserve Bank of India.
TOP THREE BY VOLUME
* Jaiprakash Associates on 4.6 million shares
* Unitech Ltd on 4.2 million shares
* Suzlon Energy on 4.2 million shars
FACTORS TO WATCH
* Indian rupee report
* Indian bond report
* Euro tense as ECB tender fails to impress
* Brent steady above $107; U.S. stocks, euro zone eyed
* Shares, euro ease as bank funding doubts persist
* Oracle sinks Nasdaq; Dow, S&P hold firm
* For closing rates of Indian ADRs
(Reporting by Devidutta Tripathy; Editing by Aradhana
Aravindan)
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