Mumbai: Indian shares were down 0.2% on Monday, pulled down by energy giant Reliance Industries which continued to fall after its UK-based partner said on Friday a well the companies drilled was dry.
Shares in Reliance Industries, which has the heaviest weight on the Sensex, extended losses and were down 0.9% at Rs2,028.10, after partner Hardy Oil said it will stop exploring a well for gas in the D9 block off India’s east coast.
“The stock has shed a lot more than the impact of abandonment of one D9 well,” said Deven Choksey, managing director and CEO of K.R. Choksey Shares.
“We could see buying coming in for the stock at lower levels although the pending case with Reliance Natural Resources still bothers,” Choksey added.
By 11:13am, the 30-share BSE Index was trading down 0.23% at 16,771.35, with one-third of its components declining. The 50-share NSE index was down 0.3% at 4,982.10.
In the broader market, losers outpaced gainers in the ratio of 1.5:1 in a volume of 104 million shares.
“The market is still consolidating and we might see this continuing until the end of earnings season. Investors are reshuffling their portfolios with results trickling in.”
Foreign funds which have poured in a total of more than $14 billion in Indian equities so far this year, were net sellers in two of the four sessions last week.
Lenders, such as State Bank of India, were down after a steep rise, Choksey pointed. State Bank was down 1.4% but was up over 80 percent so far this year.
Export-focussed software firms gained the most, on improving sector outlook.
Top outsourcer Tata Consultancy firmed 1.2% while rival Infosys Technologies was up 0.6%.