Markets edge lower; Reliance, ICICI down

Markets edge lower; Reliance, ICICI down

Mumbai: Indian shares were down 0.2% on Tuesday as traders took profits in stocks such as ICICI Bank and Reliance Industries after the market had rallied more than 8% this month.

“Some consolidation is required now," said Ajay Parmar, head of institutional equities at Emkay Global.

“Valuations are looking expensive, but at the same time the inflow of local money as well as international money is very strong," he said.

By 11:35am, the 30-share BSE index was trading down 0.22% at 17162.08, with two-thirds of its components declining. The 50-share NSE index was down 0.1% at 5095.60.

The benchmark has jumped 78% in 2009, boosted by foreign portfolio inflows of more than $15 billion.

In the broader market, gainers outpaced losers in a ratio of 1.5:1 on volume of 93 million shares.

Reliance slipped 0.6% to Rs2,182.80, after the energy giant rose 3.3% on Monday following its offer to buy a controlling interest in US-based bankrupt petrochemicals company LyondellBasell.

Private-sector bank ICICI was down 1.1% at Rs906.45 after it had risen 3.5% over two sessions.

Hindalco Industries shed nearly a% to Rs132.50 after sources said the aluminium maker raised $600 million through sale of shares. It had opened a share sale on Monday at Rs130.90 each.

Leading utility vehicle maker Mahindra & Mahindra climbed 2.7% to Rs1,070, after the head of its defence systems unit said it would bid for domestic defence projects worth $3.5 billion over the next seven years.