* BSE index closes down 0.64 percent, NSE index ends 0.64
* NSE index marks biggest fall since March 3
* Interest sensitive stocks fall on inflation
(Updates with retail inflation data)
By Indulal PM
MUMBAI, April 15 India's broader NSE index fell
for a second consecutive session on Tuesday, marking its biggest
fall since March 3, as interest-rate sensitive shares such as
Housing Development Finance Corp fell after wholesale inflation
accelerated more than expected.
The wholesale price index (WPI) in March rose a
much faster-than-expected 5.70 percent from a year earlier,
marking a three-month high and coming well above the 5.30
percent increase forecast by economists.
Inflation concerns were reinforced after CPI data in March
quickened to 8.31 percent, driven by higher food prices,
government data showed on Tuesday.
Worries that a rally that sent indexes to record highs last
week may have been overdone also weighed, especially as Asian
shares were hit by data showing China's money supply growing at
the weakest pace in more than a decade.
Foreign institutional investors, who have pumped in $4.8
billion so far in 2014, became net sellers worth 3.63 billion
rupees ($60.3 million) on Friday for the first time since March
10. Markets were closed on Monday for a holiday.
"With the Nifty seeing a one-sided rally for the last
several weeks, investors may continue to book partial profits
too. In the coming sessions, fourth quarter results, election
outcome and global cues will have a major impact on the market
trend," said by Rakesh Goyal, Senior Vice President, Bonanza
"However, despite selling pressure, Nifty is seen holding
above the 6700 level well, which shows optimism in the near
term. The index can be seen trading in a compact range of
6650-6820 for the last few trading sessions," he added.
The benchmark BSE index closed 0.64 percent lower
at 22,484.93, while the broader NSE index also ended
down 0.64 percent at 6,733.10.
Interest rate-sensitive shares such as those of banks and
real estate companies fell after the surprisingly strong
wholesale price inflation.
These sectors had surged on anticipation the Reserve Bank of
India would hold off on further interest rate hikes after
tightening monetary policy by 75 basis points since September.
Housing Development Finance Corp. fell 3.39
percent, while DLF Ltd lost 5.8 percent and Unitech
closed 2.1 percent lower.
Among banks, State Bank of India ended down 1.5
Investors took profit across a range of blue chips. Hindalco
Industries fell 4.73 percent, while Tata Motors
, which had gained 6.3 percent so far this month, was
down 2.4 percent.
However, Infosys Ltd rose 0.76 percent after
posting a stronger-than-expected 25 percent increase in net
Other IT outsourcing companies also rose, with Tata
Consultancy Services gaining 4.1 percent and Wipro
closing 3.6 percent higher.
Shares in United Spirits Ltd rose as much as 15
percent to a record high of 2,940.80 rupees after Diageo Plc
announced a tender offer to acquire up to an additional
26 percent stake in the Indian firm at 3,030 rupees a share. The
offer will be launched in June.
Shares in the spirits maker ended up 11.6 percent.
For additional stocks on the move double click
FACTORS TO WATCH
* Dollar holds firm, German Zew could hurt Euro
* Brent drops below $109 as investors weigh Ukraine, Libiya
* Stx dip on concerns over Ukraine, Chinese growth
* 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.....
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
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
(Reporting by Indulal PM; Editing by Anupama Dwivedi)