September 10, 2018 / 6:57 AM / in 8 months

Indian shares fall 1 pct; HDFC group firms top drag

* Both NSE and BSE indexes down 1 pct

* Asian shares sag as Trump ups ante in trade war

* Axis Bank hits record high after CEO appointment

By Krishna V Kurup

Sept 10 (Reuters) - Indian shares fell 1 percent on Monday, tracking broader Asia as fears of a potentially major escalation in the Sino-U.S. trade conflict weighed on investor sentiment, while the rupee depreciated to a fresh low, bolstering inflation concerns.

On Friday, U.S. President Donald Trump warned he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days.

Beijing has warned of retaliation if Washington launches any new measures, but it is running out of room to match them dollar-for-dollar, raising concerns it could resort to other measures such as weakening the yuan or taking action against U.S. companies in China.

The rupee declined in line with other Asian currencies under pressure from a stronger dollar, higher crude prices and rising global trade tensions. It slipped to a life low of 72.65 per dollar.

The NSE stock index is being dominated by heavyweights such as HDFC Bank Ltd, Housing Development Finance Corp Ltd, Reliance Industries , Tata Consultancy Services and Infosys Ltd , said Pritam Deuskar, fund manager at Bonanza Portfolio Ltd.

These heavyweights have about 40 percent impact on the Nifty, he said, adding that the range for Nifty in the near term was 11,300-11,900 levels.

The broader NSE index was 1.1 percent lower at 11,459 as of 0651 GMT and the benchmark BSE index was down 1.05 percent at 37,988.91, after two consecutive sessions of gains.

Financials led the losses with HDFC Bank and Housing Development Finance Corp leading the pack, down 1.2 percent and 1.6 percent, respectively.

Energy shares also lost ground with the Nifty energy index declining as much as 1.3 percent. Reliance Industries fell 0.4 percent, while Coal India Ltd shed 1.9 percent.

Meanwhile, Axis Bank Ltd rose 5 percent to a record high after the lender appointed a new CEO and MD.

Tata Global Beverages climbed 5.5 percent in its sharpest intraday gain in nearly 10 weeks after the beverage maker said it was restructuring its international operations to save costs and improve efficiency. (Reporting by Krishna V Kurup in Bengaluru; Editing by Subhranshu Sahu)

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