Indian shares close down 3.28 pct

MUMBAI - Indian shares closed 3.28 percent lower Friday on concerns of further monetary tightening after inflation rose, while industrial production data disappointed, dealers said.

By (AFP)

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Published: Fri 11 Jul 2008, 6:50 PM

Last updated: Sun 5 Apr 2015, 12:49 PM

The benchmark Mumbai 30-share Sensex index fell 456.39 points to 13,469.85.

"Wholesale prices jumped, showing no signs of cooling despite the Reserve Bank of India's aggressive monetary tightening in recent months," said Sherman Chan, an economist with Moody's Economy.com.

India's annual inflation rate rose to 11.89 percent for the week ended June 28 from 11.63 percent the previous week, as the price of manufactured goods, food and fuel increased, according to the latest government data on Friday.

The markets slipped in late afternoon trade, reacting to weak industrial production data for May.

Industrial growth in Asia's second largest economy was 3.8 percent, its slowest pace in six years, hit by rising inflation, high input costs and monetary tightening. The figure was 10.6 percent in the same month last year.

The markets largely ignored first quarter earnings data from Indian software giant Infosys Technologies on Friday.

Infosys reported a forecast-beating first quarter net profit jump of 20.7 percent, soothing some concerns about the impact of a global economic slowdown.

Net profit over the three months to June hit 13.02 billion rupees (302 million dollars) from 10.79 billion a year earlier, the company said.

Infosys fell 129.75 rupees or 7.18 percent to 1,676.45 as investors booked profit from an intra-day high of 1,876.


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