Indian shares fall for 5th day; Tata Motors leads decline

Thu Mar 21, 2013 7:24am EDT

* BSE falls 0.48 pct, NSE ends 0.63 pct lower
    * Tata Motors slumps on fears of China's new fuel norms

    By Manoj Dharra
    MUMBAI, March 21 (Reuters) - Indian shares fell on Thursday
for a fifth straight session to their lowest close in nearly
four months as Tata Motors slumped due to fears of China's new
fuel norms, while broader sentiment stayed weak because of
concerns about political instability.
    Markets have been under pressure, having fallen 2.6 percent
after the central bank stuck to its cautious stance on future
rate cuts and a key ally of the ruling coalition pulled out,
creating political uncertainty.
    Investors are now concerned about the fate of proposed
reforms and bills and await action by the government to revive
    "The biggest domestic worry is whether political uncertainty
would impact the decision making of the government," said Sandip
Sabharwal, chief executive - portfolio management services at
Prabhudas Lilladher. 
    "We could continue to underperform global markets if there
is no political clarity."
    The benchmark BSE index fell 0.48 percent, or 91.32
points, to 18,792.87, its lowest close since Nov. 26, 2012. 
    The broader NSE index fell 0.63 percent, or 35.65
points, to 5,658.75. 
    Tata Motors Ltd fell 3.5 percent on worries that
China's new stringent fuel economy standard would adversely
affect the Indian automaker's unit Jaguar Land Rover Ltd
    Capital goods shares were under selling pressure on weak
market sentiments. Larsen & Toubro dropped 2.9
percent, while Bharat Heavy Electricals Ltd shares
closed down 1.35 percent.   
    Asian Paints Ltd ended 1.6 percent lower after
Deutsche Bank downgraded the company to "sell" from "hold",
saying valuations were running ahead of fundamentals. The
investment bank said the stock was trading at an all-time high
valuation despite rising competition. 
    However, recent underperformer gained. ICICI Bank 
gained 3.4 percent on value buying after steep recent falls over
allegations of money laundering by a local journalist.
    Bharti Airtel Ltd ended 6.4 percent higher after
falling 11.7 percent in the previous five sessions.
    Titan Industries Ltd gained 2.15 percent after
Morgan Stanley upgraded the company to "equal-weight" from
"underweight", citing underperforming shares. 
    FACTORS TO WATCH                                            
* Yen pares gains vs dollar and euro on Kuroda comments   
* Oil falls on Cyprus worries and weak manufacturing       
* Oil falls on Cyprus worries and weak manufacturing 
* 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                                   
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 (Additional reporting by Abhishek Vishnoi, Editing by
Subhranshu Sahu)