Indian shares snap 3-day winning streak; Hindustan Unilever hit
* BSE ends 0.6 pct lower; NSE down 0.56 pct * Hindustan Unilever shares fall on higher royalties * India finmin seeks to reassure foreign investors on reforms, rating By Manoj Dharra MUMBAI, Jan 22 (Reuters) - Indian shares snapped a three-day winning streak on Tuesday, retreating from two-year highs, as Hindustan Unilever slumped after posting disappointing volumes growth, while Cairn India Ltd was hit by worries about a slower production ramp-up in a key block. HUL results were in contrast with a series of upbeat reports from blue chips such as Infosys Ltd, which had sparked a round of profit-taking in shares. Earnings results from HUL and Cairn offset the impact of Indian Finance Minister P. Chidambaram's comment during meetings with foreign investors in Hong Kong that the government remained committed to pro-growth policies and reforms. Results of blue chips such as Larsen & Toubro on Thursday and Maruti Suzuki on Friday will set the trend for markets, while the Reserve Bank of India's policy review on Jan. 29, when the central bank is widely expected to cut interest rates by 25 basis points, will be key next week. "It was mostly profit booking and disappointment on HUL numbers which led to the fall in the market," said G. Chokkalingam, executive director and chief investment officer at Centrum Wealth Management. "The uptrend remains intact, as earnings season would remain robust," Chokkalingam added. The benchmark BSE index ended 0.6 percent, or 120.25 points, to end at 19,981.57, after hitting its highest since January 2011 on Monday. The broader NSE index fell 0.56 percent, or 33.80 points, to end at 6,048.50, a day after hitting its highest since January 6, 2011. Hindustan Unilever Ltd, the Indian unit of Anglo-Dutch firm Unilever Plc , fell 3.3 percent. India's largest consumer goods maker fell despite posting a 16 percent jump in third-quarter net profit, hurt by low volume growth and a rise in royalty payments. Cairn India Ltd shares fell 2.3 percent after a Kotak report said its management indicated a slower ramp-up in production from its Rajasthan block. Ashok Leyland fell 2.85 percent after Jefferies downgraded India's second-biggest bus and truck maker to "underperform" from "buy", citing slower demand for trucks from Southern India. Kotak Mahindra Bank rose 1.55 percent after its December quarter earnings rose 24.6 percent to 5.77 billion rupees from a year earlier. Pantaloon Retail Ltd gained 9.7 percent after RBI eased restrictions on the purchase of shares in the company by foreign institutional investors as well as non-resident Indians and persons of Indian origin. FACTORS TO WATCH * Euro rises, Bunds fall after German ZEW survey * Oil rises to $112, Japan plans more stimulus * Shares hit 20-month high;Japan promises open-ended easing * Foreign institutional investor flows * For closing rates of Indian ADRs ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... OTHER MARKETS: Wall Street .... Gold ....... Currency.. Eurostocks..... Oil ........ JP bonds... ADR Report ..... LME metals. US bonds.. Stocks News US.. Stocks News Europe DIARIES & DATA: Indian Data Watch Asia earnings diary U.S. earnings diary European diary Indian diary Wall Street Week Ahead Eurostocks Week Ahead TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General Asia Macro data <ECONASIA (Additional reporting by Abhishek Vishnoi; Editing by Jijo Jacob)
- North Korea says Kim's powerful uncle dismissed for 'criminal acts'
- Thai PM calls snap election, protesters want power now |
- Record cold, ice grip U.S.; snow heads East
- Protesters fell Lenin statue, tell Ukraine's president 'you're next'
- Putin dissolves state news agency, tightens grip on Russia media