Indian shares retreat from record highs on profit taking
Indian shares fell on Tuesday from their record highs in the previous session as investors chose to book profits in recent outperformers such as Oil and Natural Gas Corp. Profit-booking was seen in most of the recent outperformers such as banks, while metal stocks were under pressure ahead of the top court's verdict on "illegal" coal mines.
Copyright Reuters, 2014
However, sentiment remained upbeat as overseas investors bought shares worth $193 million on Monday, continuing their buying streak for a sixth straight session, exchange and regulatory data showed. They have pumped $13.8 billion into Indian equities so far this year. Regional markets were muted with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.1 percent. The benchmark BSE index closed 0.2 percent lower at 27,265.32 after hitting an all-time high of 27,354.99 on Monday. The broader NSE index ended 0.26 percent down at 8,152.95 after surging to a record high of 8,180.20 in the previous session.
Market heavyweights were under selling pressure. ONGC, which gained 2.62 percent in the previous session, closed 1.3 percent lower, while ICICI Bank fell 1.4 percent after a gain of 1.3 percent on Monday. Metal stocks were under pressure, with Hindalco Industries down 0.3 percent, ahead of the top court's hearing on "illegal" coal block allocations later in the day. Other mining stocks also fell. Sesa Sterlite Ltd declined 0.9 percent, while NMDC Ltd closed 1.3 percent lower.
Investors took profits in some large-cap infrastructure stocks such as Larsen & Toubro Ltd (L&T). L&T ended 1.5 percent lower, but is up 49.9 percent this year. Bharat Heavy Electricals Ltd closed down 1.2 percent, but has gained 25 percent so far this year. Among gainers, ABB India Ltd rose 3.6 percent after parent ABB Ltd said it would buy back $4 billion shares.