* BSE falls 0.07 pct; NSE ends down 0.08 pct
* Modi win engenders hopes for India's sluggish economy-poll
* Central bank to keep rates on hold-poll
By Indulal PM
MUMBAI, May 30 Indian shares fell on Friday to
mark their first weekly fall in four, as blue-chips such as
State Bank of India declined after foreign investors
sold shares for a fourth consecutive session, while caution was
also seen ahead of GDP data and the central bank's policy
A Reuters poll predicts no clear improvement in Asia's
third-largest economy, which is likely to have grown by 4.8
percent from a year earlier, while rates are expected to be kept
on hold by the central bank on June 3.
Foreign institutional investors, who supported the sharp
rally in Indian shares in May, continued selling on Thursday,
their fifth session of sales in the last six. Overseas investors
sold Indian shares worth 5.23 billion rupees ($88.6 million) on
Thursday, provisional exchange data showed.
"Market has given a correction and its a healthy correction.
This seems to be a buy-on-dips market. At every level, we have
seen individual stocks outperforming," said Deven Choksey,
managing director, KR Choksey Securities.
"We have RBI policy next week, and I don't think rates will
be changed. We have more policy measures from the government to
watch in the coming weeks, which will have an impact on
The benchmark BSE index closed 0.07 percent lower
at 24,217.34 points. It fell 1.9 percent in this week, but
gained 8 percent in May.
The broader NSE index ended down 0.08 percent at
7,229.95 points. It lost 1.86 percent this week, while gaining 8
percent during the month.
Banking stocks led the declines with NSE's bank index
falling 1.6 percent on profit-taking. The index
gained 15.1 percent in May and investors were encashing
positions ahead of the RBI policy meet, traders said.
State Bank of India fell 2.3 percent while ICICI
Bank ended 1.3 percent lower.
Tata Motors Ltd closed down 2.2 percent after its
earnings missed some analysts' estimates.
However, shares in defence equipment makers rallied on media
reports of a potential increase in foreign direct investment
limit in the sector from current 26 percent.
Bharat Electronics gained 1.9 percent, BEML
surged 6.6 percent and Pipavav Defence and Offshore
Engineering Co rose 5 percent.
Defensives such as pharma and healthcare stocks gained on
value-buying. Hindustan Unilever gained 8.4 percent, Dr
Reddy's Laboratories added 3.2 percent and Cipla Ltd
ended 3.3 percent higher.
Shares in Mahindra & Mahindra gained 4.97 percent
after its Jan-March earnings beat estimates.
Voltas Ltd surged 3.8 percent after Jan-March
earnings came in sharply ahead of some analysts estimates, led
by strong margin expansion in its cooling products business.
For additional stocks on the move double click
FACTORS TO WATCH
* Yen rally slackens off, all eyes on ECB meeting
* Oil steady near $110 on supply risks, U.S. demand
* Shares steady after hitting record high; all eyes on ECB
* 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
(Additional reporting by Abhishek Vishnoi; Editing by Sunil