Stock Market latest news January 2014

Indian shares fall most in nearly 1-1/2 months; blue chips hit

BSE index falls 1.19 pct; NSE ends 1.28 pct lower

* Global shares fall as China disappoints

* Midcap Indian state-owned banks rise on valuations

 

MUMBAI, Jan 2 - Indian shares fell more than 1

percent on Thursday, posting their biggest single-day percentage

fall in nearly 1-1/2 months as profit-booking hit blue chips

such as ICICI Bank for a second consecutive day, in a weak start

to 2014.

Combined with Wednesday's fall, the benchmark BSE index

is down 1.3 percent over the first two trading sessions

of the year, after gaining 8.9 percent last year on the back of

strong foreign buying.

Falls on Thursday were accentuated by weaker European and

Asian shares after disappointing manufacturing data from China.

Shares have started the year with caution ahead of upcoming

quarterly earnings, with analysts also keenly awaiting inflation

data due mid-month that will help determine whether the Reserve

Bank of India raises interest rates at the end of January.

Any rate hikes could further undermine confidence in

economic growth. Data on Thursday showed the HSBC Manufacturing

Purchasing Managers' Index (PMI), compiled by

Markit, fell to 50.7 in December from 51.3 in the previous

month, reflecting softness in new domestic orders.

"Earnings would be more important from equity market's

perspective as market has discounted some cooling off in

inflation. We are expecting some positive surprises in Oct-Dec

results," said Sudip Bandyopadhyay, managing director at

Destimoney Securities Pvt Ltd.

The benchmark BSE index fell 1.19 percent, or

252.15 points, to end at 20,888.33, erasing earlier gains of as

much as 0.9 percent.

The broader NSE index lost 1.28 percent, or 80.50

points, to end at 6,221.15, posting its lowest close since Dec

19.

Both indexes marked their biggest single day fall since Nov

21.

ICICI Bank Ltd fell 2 percent after earlier rising

as much as 1.9 percent, while Axis Bank Ltd lost 1.5

percent.

Among non-banking lenders, IDFC Ltd lost 4.7

percent, erasing earlier gains of 1.5 percent, while Housing

Development Finance Corp Ltd ended 0.3 percent lower.

In other blue chip shares, Larsen and Toubro Ltd

fell 3 percent, while ITC Ltd ended lower 2.3 percent.

However among stocks that gained, midcap state-owned banks,

including Corporation Bank Ltd, rose as dealers cited

attractive valuations compared with larger private sector

rivals.

Corporation Bank and Indian Bank Ltd ended up 0.5

percent each.

For additional stocks on the move double click

FACTORS TO WATCH

* Dollar near 5-year high vs yen, eyes on U.S. data

* Brent rises above $111, but weak China data drags

* Asia shares turn mixed as China disappoints

* 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.....

OTHER MARKETS:

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

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