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Shares down 0.7%; metal makers retreat

Shares down 0.7%; metal makers retreat
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First Published: Tue, Jun 22 2010. 03 58 PM IST
Updated: Tue, Jun 22 2010. 03 58 PM IST
Mumbai: Indian shares shed 0.7% on Tuesday, tracking world equities, as investors locked gains after shares closed at two-and-half month high in the previous session.
Financials and metal producers led the decline.
Metal makers which had led the rise on Monday, declined as base metal prices retreated as market frenzy over China’s promise of a more flexible currency eased and investors realized Beijing was unlikely to allow any sharp rises in the yuan.
Financials dropped, with the banking sector index shedding 0.8% after rising 2% on Monday.
The BSE 30-share index Sensex declined 0.71% or 126.86 points to 17,749.69, with 27 of its components losing ground.
“People are booking profits after the recent spike,” said Arun Kejriwal, director of research firm KRIS.
Foreign funds have been net buyers since seven sessions to 18 June, and have invested a net $1 billion so far this month, pushing the BSE benchmark 4.8% higher.
Last month, they had pulled out $2 billion from Indian stocks as euro zone’s fiscal troubles hit their risk-taking capacity.
“FIIs (foreign institutional investors) are buying for now, but how long will the trend continue is the question,” said Kejriwal.
He said the euro and euro zone developments would set the market’s direction in the near term.
Non-ferrous metals producer Sterlite Industries and aluminium maker Hindalco declined 2.7% and 1.4% respectively.
Tata Steel, the world’s eighth largest steelmaker, shed nearly 2%.
Top lender State Bank of India dropped 1.3% while leading private-sector rivals ICICI Bank and HDFC Bank declined 0.9% and 0.6% respectively.
Infosys, the country’s No. 2 software services firm, declined 1.2% after rising 2.4% over the past four sessions. Rivals Tata Consultancy Services and Wipro shed nearly 1% and 1.2% respectively.
In the broader market, declining shares outpaced advancing ones in the ratio of 1.2:1 on a relatively moderate volume of 373 million shares.
The NSE 50-share index Nifty shed 0.7% to 5,316.55 points.
At 1014 GMT, MSCI’s all-country world index was down 0.8%, while the more volatile emerging markets index declined 1.2%.
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First Published: Tue, Jun 22 2010. 03 58 PM IST
More Topics: Sensex | Shares | Nifty | Rupee | Dollar |