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Indian shares drop 1 pct, Maruti up on higher Feb sales
March 1, 2012 / 5:46 AM / 6 years ago

Indian shares drop 1 pct, Maruti up on higher Feb sales

 * ONGC share sell draws investors, share flattish
 * ICICI Bank, State Bank of India down on growth worries
 * Maruti rises as Feb vehicle sales up 6.5 pct

 (Updates to mid-morning)	
 MUMBAI, March 1 (Reuters) - Indian shares skidded 1
percent on Thursday as a government share sale in Oil and
Natural Gas Corp to raise at least $2.5 billion drew
investors away from the secondary market.	
 Banks extended losses for a second day after economic growth
slowed to its weakest pace in almost three years in the December
quarter as high interest rates and rising input costs hurt
investment and manufacturing. 	
 State Bank of India, the country's largest lender,
fell 2 percent, while rivals ICICI Bank shed 2.5
percent and HDFC Bank dropped 1 percent.	
 The main 30-share BSE index was down 0.95 percent
at 17,584.90 by 11:03 a.m. (0533 GMT), with 23 of its components
in the red.	
 It fell as much as 1.3 percent at one stage, and
pulled back after a business survey showed new orders for
factories touched a 10-month high in February, although the
manufacturing sector expansion slowed slightly. 	
 Leading car maker Maruti Suzuki bucked the trend
and rallied 2.8 percent after its February sales rose 6.5
percent. 	
 Truck and car maker Tata Motors was down 0.2
percent and utility vehicle leader Mahindra and Mahindra
 shed 1.6 percent ahead of their February sales
numbers.	
 ONGC rose as much as 1 percent after the government
commenced a one-day auction to sell a 5 percent stake in the
country's largest oil producer at a floor price of 290 rupees a
share. 	
 The stock later came off and was little unchanged at 292.5
rupees.	
 "ONGC will suck money from the market," said Hitash Dang,
vice president at Jaypee Capital. 	
 Foreign funds, which have bought Indian shares worth $7
billion since the end of December, are expected to bid heavily
for ONGC shares, traders said.	
 Top engineering conglomerate Larsen and Toubro 
fell 1.8 percent, extended losses to a second day after it
missed out on a 160-billion-rupee bulk tender by utility NTPC
. 	
 State-run Bharat Heavy Electricals, which too
missed out on the order, fell 3.3 percent.	
 Sun Pharmaceutical Industries rose 2 percent after
it received U.S. Food and Drug Administration's approval to sell
the generic version of Zypreza tablets in the United States. The
drug is used to treat schizophrenia. 	
 The 50-share NSE index was down 0.92 percent at
5,335.3. In the broader market, there were about 2.4 losers for
every gainer on volume of 163.98 million shares.	
 The MSCI's measure of Asian markets other than Japan
 was down 0.7 percent while Japan's Nikkei
 fell 0.4 percent.	
 	
 STOCKS ON THE MOVE	
 * Tata Communications rose 3.6 percent after the
Times of India reported the company was preparing to bid for
Britain's Cable & Wireless Worldwide Plc, possibly in
the next two weeks. Officials at Tata Communications could not
be immediately reached for comment by Reuters. 	
 * Videocon Industries fell 0.54 percent after its
December quarter net profit fell 47 percent. 	
 * Glenmark Pharmaceuticals rose 1.2 percent after
the drugmaker received U.S. drug regulator's approval to sell an
oral contraceptive tablet and a skin treatment gel in the United
States. 	
     	
 TOP THREE BY VOLUME	
 * IFCI on 15.27 million shares	
 * Lanco Infratech on 14.42 million shares	
 * HDIL on 7.5 million shares.    	
        	
 FACTORS TO WATCH 	
 * Indian rupee report                                    	
 * Indian bond report                                      	
 * Euro, Aussie hit by wave of profit taking post ECB     	
 * Oil ends Feb. higher on upbeat U.S. Fed report          	
 * U.S. stocks fall after Bernanke remarks           	
 * Wall St snaps 4-day advance after Bernanke remarks       	
 * Foreign institutional investor flows         	
 * For closing rates of Indian ADRs                      
 
 (Reporting by Kaustubh Kulkarni; Editing by Ranjit Gangadharan)
   	
     	
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