* Shares fall on deepening global recession worries
* Gains on industrial production data prove shortlived.
* Reliance, ICICI lead fall
* Market shut on Thursday for a holiday
(Updates to close)
By Devidutta Tripathy
NEW DELHI, Nov 12 (Reuters) - Indian shares fell 3.08
percent on Wednesday, taking their losses over two days to 9.5
percent as investor fears of a global recession and a local
downturn remained dominant, despite some data meeting
expectations.
Tata Teleservices (Maharashtra) (TTML.BO) rose 7.6 percent
ahead of confirmation that Japan's NTT DoCoMo (9437.T) would
buy 26 percent of its parent, Tata Teleservices, for $2.7
billion [ID:nT350682], but sector leaders Bharti Airtel
(BRTI.BO) and Reliance Communication (RLCM.BO) fell 4.1 percent
and 2.1 percent respectively.
Reliance Industries (RELI.BO) dropped 3.7 percent to
1,162.15 rupees, its weakest close since Oct. 28, and ICICI
Bank (ICBK.BO) slipped 8.4 percent to a two-week closing low of
397.90 rupees. The two stocks account for more than 20 percent
of the main index.
The market got a boost from data showing industrial
production rose an annual 4.8 percent in September, above the
previous month's 1.4 percent, but, with economists saying a
global recession and credit crunch would weigh on the local
economy, the gains could not be sustained.
"Industrial production data was not bad in the current
context. Macro pictures also look better to me given commodity
prices are falling," said Gajendra Nagpal, CEO at Unicon
Financial.
"But this selling pressure, gives me the impression that
people are not convinced and they want to get out after every
rise. And this supply overhang will continue."
The main 30-share BSE index .BSESN fell 303.36 points to
9,536.33, its lowest close since Oct. 29, with 28 components
falling. It hit a three-year low of 7,697.39 on Oct. 27.
In the broader market, 1,703 losers were ahead of 827
gainers on volume of 283 million shares.
The 50-share NSE index fell 3.07 percent to
2,848.45, its lowest close since Oct. 29.
"There are still so many negatives in the environment that
any bounce back will be difficult to sustain," said Neeraj
Dewan, director at Quantum Securities.
The market is shut on Thursday for a local holiday.
Economists have cut forecasts for Asia's third-largest
economy, with many expecting growth to slow to 7 percent or
lower in the year to March 2009, sharply down from rates of 9
percent or higher clocked in the past three fiscal years.
Traders said a sustainable recovery in the market was
unlikely in the absence of massive investments by foreign
funds, which have sold a net $12.7 billion of Indian stocks so
far in 2008 after investing a record $17.4 billion last year.
STOCKS THAT MOVED
* Tata Group firms Tata Steel (TISC.BO) and Tata Motors
(TAMO.BO) fell 3 percent and 3.6 percent respectively, after
news the conglomerate had put acquisitions on hold.
* Software exporters Tata Consultancy Services (TCS.BO) and
Infosys Technologies (INFY.BO) rose after the rupee fell 2.4
percent against the dollar, its biggest single-day percentage
fall since February 1996.
* Oil & Natural Gas Corp (ONGC.BO) fell 3.2 percent to
711.55 rupees after its chairman said it would lose 3-4 billion
rupees ($60-$80 million) a year if it followed a finance
ministry directive to keep 60 percent of its surplus cash with
state-run banks.
FACTORS TO WATCH
* Indian rupee at day's low as share losses hurt
[INR/]
* Indian bond yields ease on weak growth outlook
[IN/]
* FOREX-Dlr down vs euro but pares losses on risk
aversion[FRX/]
* Oil falls to 20-month low as slowdown hits demand
[O/R]
* GLOBAL MARKETS-European shares edge up, dollar
dips[MKTS/GLOB]
* US STOCKS-U.S. stock index futures point to early losses
[.N]
* For closing rates of Indian ADRs
INADR
(Additional reporting by Prashant Mehra; Editing by John
Mair)
