Indian shares snap winning streak; autos, L&T hit

Wed Apr 3, 2013 7:29am EDT

* BSE ends 1.26 pct lower; NSE down 1.3 pct
    * India PM says downturn temporary
    * Adani Power shares rally on tariff hike ruling

    By Manoj Dharra
    MUMBAI, April 3 (Reuters) - Indian shares snapped a four-day
winning streak on Wednesday to post their biggest falls in two
weeks as auto shares such as Tata Motors were hit by weak March
sales, while recent outperformers such as Larsen & Toubro
retreated.
    Prime Minister Manmohan Singh's speech earlier in the day
urging business leaders to keep faith in his government's
efforts towards improving a dire investment climate failed to
bolster market sentiment as he did not give concrete measures
towards recovery. 
    Singh's comments also failed to resonate given continued
political uncertainty and worries about early elections after
the withdrawal of a key regional ally from the ruling coalition
last month, dealers said.
    A redeeming factor has been foreign institutional inflows of
over $10 billion so far this year.
    "The sentiment is cautious at this point. Given the
political situation, some more downside is possible," said G.
Chokkalingam, Executive Director & Chief Investment Officer,
Centrum Wealth Management.
    "It seems like even the FII investments this year also look
at risk of being pulled out," he said.
    The BSE index fell 1.26 percent, or 239.31 points
to 18,801.64 points, posting its biggest daily percentage fall
since March 19 and erasing a good chunk of its 1.9 percent gain
over the past four previous trading sessions.
    The broader NSE index ended down 1.31 percent, or
75.20 points to 5,672.90.    
    Auto shares were among the leading decliners amid continued
concerns after companies posted declines in sales in March from
a year earlier. 
    Tata Motors fell 3.7 percent, while Bajaj Auto
 ended 3.4 percent lower. 
    Recent outperformers fell, with Larsen & Toubro 
down 3.2 percent after adding 4.3 percent in the previous four
sessions.
    Tata Consultancy Services Ltd shares fell 1.5
percent, and have fallen 2.1 percent in April on worries about
their January-March earnings. 
    However, Adani Power Ltd ended nearly 9 percent
higher after regulators allowed it to raise tariffs for
electricity on a temporary basis, in a ruling that could boost
other firms grappling with erratic fuel supplies.
 
    Tata Power Company Ltd ended up 0.7 percent while
Jaiprakash Power Ventures Ltd gained 1.34 percent. 
    Reliance Communications Ltd gained 1.6 percent,
extending gains a day after entering into a pact with a unit of
brother Mukesh Ambani's Reliance Industries Ltd  on
Tuesday, for sharing the company's optic fibre
network.    

 (Additional reporting by Abhishek Vishnoi; Editing by Sunil
Nair)