Wknd. KTBuzzon Inspired Living Indulge City Times KT Mobile KT ePaper KT Competitions Subscribe KT
Khaleej Times Google Plus Page Khaleej Times Facebook Page Khaleej Times Twitter Page Khaleej Times on Instagram
  UAE Sports
  Horse Racing
  Sports Talk
  Inspired Living
  Parent Talk
  Used Cars
Business Home > Market
Biggest drop in 7 months

BOMBAY STOCK EXCHANGE (Reuters) / 22 February 2013

MUMBAI - Indian shares posted their biggest fall since July 2012 as banking stocks such as ICICI Bank fell a day after RBI data showed loan growth was still a concern and on weakness in global shares due to worries over Fed slowing its bond-buying programme.

This was largely a reflection of the fall in risk assets which fell after minutes of the Federal Reserve’s last policy meeting cast doubts over how much longer the US central bank would stick to its stimulus plan.

“The selling pressure is more global, than due to local factors. Some liquidation might continue after such high inflows,” said Phani Sekhar, a fund manager at Angel Broking.

The government may peg its fiscal deficit target at 4.8 per cent of GDP for the next fiscal year, but it needs to explain as to how the figure is arrived at, he said. 

The Union Budget to be presented on February 28 will be keenly watched as a test of the government’s commitment to fiscal responsibility, whether it has a credible plan for reducing the deficit and whether populist measures can be avoided before the general elections in 2014. The BSE index fell 1.62 per cent, or 317.39 points, to end at 19,325.36, posting its biggest daily fall since July 23, 2012.

The index closed at its lowest level since December 24, 2012.

The 50-share NSE index fell 1.53 per cent, or 90.80 points, to end at 5,852.25.

Banking shares were among the major losers after RBI data showed loan growth continued to remain a concern. ICICI Bank fell 3.74 per cent while State Bank of India ended 1.84 per cent lower.

Banks’ advances have grown 8.7 per cent so far this fiscal year compared with 11.2 per cent a year earlier, while deposit growth was 7.8 per cent compared with 11.4 per cent in the same period a year earlier.

Yes Bank fell 4.37 per cent while Axis Bank declined 2.4 per cent.

Reliance Industries  fell 1.8 per cent after a 3.1 per cent surge on Wednesday.

Weak sentiment led to sell-off in blue-chip metal shares such as Tata Steel, which ended 4.05 per cent lower, and Jindal Steel and Power which declined 4.1 per cent.

Cigarette maker ITC  ended 1.13 per cent lower on concerns over a hike in taxation in the upcoming budget, which might impact its volume, dealers said.   

ABB fell 3.5 per cent after the company reported a 74 per cent fall in its October-December net profit at Rs167.7 million.

Shriram Transport Finance Co Ltd slumped 7.5 per cent after US private equity firm TPG Capital raised $305 million by selling about half of its stake in the company, at a discount to Wednesday’s closing price.  

Shares in Videocon Industries Ltd gained 5.8 per cent after the consumer electronics and oil company said it was in talks to sell its 10 per cent stake in an oil and gas block off the coast of Mozambique and Tanzania.


comments powered by Disqus