* BSE index falls 1.31 pct; biggest fall since Feb 3
* NSE index down 1.28 pct; biggest fall since Feb 13
* Markets to take a breather ahead of RBI policy
By Indulal PM
MUMBAI, May 29 India's NSE index posted its
biggest daily decline in nearly four months and its third fall
over the past four sessions on Thursday as Infosys slumped after
its president resigned, while profit-taking continued to hit
shares after record highs earlier this month.
Sentiment was further dampened as foreign institutional
investors sold shares, albeit at modest amounts, after strong
buying earlier this year. Overseas funds sold shares worth a net
$48.75 million on Wednesday, their fourth session of selling in
five, provisional exchange data showed.
Losses accelerated in the afternoon as the monthly
derivative contracts expired at the end of the session.
Analysts said markets would take a breather ahead of the
Reserve Bank of India's policy review next week and ahead of
policy announcements from Narendra Modi's government that will
need to fulfill high expectations.
"We find this as a healthy correction. The election event is
over and we have a stable government in place. I think, fresh
position building will happen from next week as we have RBI
policy and the parliament proceedings will start," said Suresh
Parmar, head, institutional equities at KJMC Capital Markets.
"The undercurrent is still positive and we advise clients to
get into good quality stocks at declines."
The benchmark BSE index fell 1.31 percent to
24,234.15 points, its biggest fall since Feb. 3.
The broader NSE index closed 1.28 percent lower at
7,235.65 points, falling the most since Feb. 13.
Infosys Ltd fell as much as 7.84 percent, its
biggest single-day fall since March after its president and
board member B.G. Srinivas, seen by some investors as a
candidate to take over as CEO, resigned.
Srinivas became the latest senior manager to leave India's
second-largest software services exporter.
Companies whose earnings disappointed investors also tumbled
during a heavy week of results. Hero MotoCorp fell
0.14 percent after the motorcycle maker's January-March profit
adjusted for other income lagged some analyst estimates.
Shares in Oil and Natural Gas Corp. fell 2.63
percent while Cipla Ltd closed 1.95 percent lower,
ahead of its earnings announcement later during the day.
Shares in Unitech Ltd fell as much as 4.8 percent
after posting a wider-than-expected 515.5-million-rupee ($8.76
million) loss in the January-March quarter.
Shares in Coal India Ltd fell 1.8 percent after
its March quarter earnings fell short of expectation.
Among the gainers, Hindaco Industries Ltd was up
1.43 percent despite a 48 percent fall in net profit as its
operational numbers beat estimates, traders said.
Shares in Dr Reddy's Laboratories Ltd rose 1.38
percent on value-buying.
For additional stocks on the move double click
FACTORS TO WATCH
* Aussie moves higher on capex numbers, euro steadies
* Brent oil rises back above $110, U.S. gasoline draw supports
* Shares flirt with record highs on ECB easing bets
* 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
(Editing by Sunil Nair)