* More than $1 rise in oil prices dents sentiment
* Inflation data due at 1230 GMT, expected at 12.44 pct
(Updates to close)
By Sumeet Chatterjee
BANGALORE, Sept 4 (Reuters) - Indian shares dropped 1
percent on Thursday, weighed down by Reliance Industries Ltd
(RELI.BO), following a rise of more than a dollar in global oil
prices and lingering worries about a slowing global economy.
Traders said investors were wary ahead of data expected to
show annual inflation rate up in the third week of August at
12.44 percent, driven by higher prices of some commodities and
demand pressures, a Reuters poll showed. [ID:nBOM25641]
The data is due at 6 p.m. (1230 GMT).
"Although the inflation bias is towards downside, it is not
clear whether this is the peaking of inflation as crude is
still not out of the woods," said K.K. Mital, head of portfolio
management services at Globe Capital.
Petrochemicals maker Reliance Industries, India's top
listed firm which has more than 15 percent weight in the main
index, fell 2.8 percent to 2,152.65 rupees.
Kotak Securities said in a report Reliance' planned
schedule of production of gas from D-6 block in the Krishna
Godavari basin off India's east coast over the next few months
might be jeopardized if a court case was not resolved soon.
The main 30-share BSE index .BSESN fell 150.76 points to
14,899.10, after falling as much as 1.9 percent during trade.
The index is down about 27 percent in 2008.
Twenty-one of the index's components lost ground.
"The market is still facing several headwinds, both local
as well as global," brokerage India Infoline said, adding
inflation would determine the near-term trend for stocks.
Crude CLc1 rose to more than $110 a barrel on Thursday as
a number of U.S. refineries remained shut because of hurricane
disruption and ahead of U.S. government data excepted to show
falls in gasoline stocks. [O/R]
"We'll have to wait and see the quarterly corporate results
to draw some definite trend," Mital said.
Maruti Suzuki (MRTI.BO) ended up 2.9 percent at 683.90
rupees after India's top carmaker said it planned to launch its
A-star model in October, and expected sales to rise in the
coming festival season. [ID:nSP88509]
Tata Motors (TAMO.BO) fell as much as 2.8 percent during
trade after the company said it had suspended work at a plant
where it planned to make the Nano, billed as the world's
cheapest car, following violent protests.
The top vehicle maker said it was considering alternative
sites. For related stories, see [ID:nL2202988] [ID:nBOM258065]
The stock pulled back towards close and ended down 0.2
percent at 428.80 rupees.
In the broader market, 1,334 gainers led 1,270 losers on
volume of 250 million shares.
The broader 50-share NSE index fell 1.25 percent to
4,447.75.
Elsewhere in the region, Karachi's 100-share index
closed flat at 9,239.26 and Colombo's All-Share index .CSE
edged up 0.2 percent at 2,397.52.
STOCKS THAT MOVED
* Tata Power (TTPW.BO) rose 1.7 percent to 1,088 rupees
after the private power producer said it would buy a 10 percent
stake in Australian geothermal energy firm Geodynamics Ltd
(GDY.AX) for A$44.1 million (US$37 million). [ID:nBOM213483]
* Moser Baer (MOSR.BO) jumped 9.5 percent to 116.20 rupees
after the storage device maker said it raised 4.11 billion
rupees from global investors through a small stake sale in its
photo-voltaic unit. [ID:nDEL44319]
* Austral Coke & Projects (ACPL.BO) ended at 225.20 rupees
on debut, a rise of nearly 15 percent from its issue price of
196 rupees. The stock opened at 207 rupees and rose as much as
308.80 rupees.
MAIN TOP 3 BY VOLUME
* Reliance Natural Resources (RENR.BO) on 12 million shares
* IFCI (IFCI.BO) on 7 million shares
* Infrastructure Development Finance (IDFC.BO) on 5 million
shares
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Lotus bets on Indian banks, shuns realty
[ID:nBOM20075]
* Indian rupee rises, helped by lower oil, stx eyed
[INR/]
* Indian bond yields ease on inflation hopes
[IN/]
* FOREX-Dollar slips broadly, traders await ECB, BoE
[FRX/]
* Oil firms above $110 ahead of U.S. oil data
[O/R]
* GLOBAL MARKETS-Rate decisions ahead, stocks stable, dollar
slips
[MKTS/GLOB]
* Futures point to lower start on Wall Street
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by Ranjit Gangadharan)
