Indian shares slip

Indian shares logged their lowest closing level in more than a month on Monday on worries that a lower-than-expected showing by the Congress party in a key state poll could hamper any move by the Congress-led federal government to revive stalled reforms.
Financials and software stocks, which had gained in the market run-up so far this year, mainly contributed to the decline, while Tata Motors bucked the trend on news of unit Jaguar Land Rover's likely joint venture in China. The main 30-share BSE index closed down 274.12 points or 1.55 percent at 17,362.87, its lowest level since February 1, with 25 of its components closing in the red. "There is jitteriness ahead of poll results. After the rally in January and February, there is some profit taking, and fresh buying is not happening," said K.K. Mital, chief executive for portfolio management services at Globe Capital.
"Once the poll scenario is clear, some buying may return." Election results for five states are due on Tuesday but voter surveys released after the phased, month-long poll ended on Saturday indicated that Rahul Gandhi failed to deliver the election comeback he had promised for the Congress party in the most populous state of Uttar Pradesh. "There is a valid concern that if the Congress party does badly, there will be a question mark over any reform plans by the government," said Neeraj Dewan, director of New Delhi-based Quantum Securities.
Banking shares slipped on ebbing hopes of an interest rate cut in the Reserve Bank of India's policy review on March 15, as analysts expect rising crude prices could force the central bank to hold rates on fears inflation may creep up again. A cut in interest rates would help boost credit demand for banks.
State Bank of India, the country's largest lender, fell 3.3 percent. ICICI Bank shed 3.8 percent while HDFC Bank closed 1.6 percent lower. The Reserve Bank of India remains focused on economic growth even though rising oil prices have emerged as an inflationary risk since the central bank's last policy review in January, Deputy Governor Subir Gokarn said on Monday.
Shares in software exporters, which count the US and Europe among major markets, slipped after fresh concerns about the global economic health caused by a slowing Chinese economy and Greece's continuing debt crisis. Tata Consultancy Services lost 0.9 percent, Infosys fell 1.7 percent, while the sector index closed 1.2 percent lower.
Tata Motors rose 2.3 percent after sources told Reuters its luxury Jaguar Land Rover unit is seeking regulatory approvals for a manufacturing joint venture with China's Chery Automobile Co, giving it a stronger foothold in the world's largest auto market.
Oil and Natural Gas Corp closed 0.9 percent higher, reversing earlier losses, after it said state-run Life Insurance Corp raised its holding in the company to 9.5 percent. The government, which offered a 5 percent stake in ONGC through a share auction on March 1, raised $2.57 billion after selling just 98.3 percent of the shares on offer, with LIC estimated to have picked up most of the shares. In the broader market, 1,033 losers far outpaced the 420 gainers on a moderate volume of 665.5 million shares. The 50-share NSE index closed down 1.5 percent at 5,280.35.