Indian shares at seven-week low

Indian shares fell for the seventh day in eight sessions on Thursday, with disappointing results from software services bellwether Infosys Technologies adding to investor gloom over rising prices and the prospect of tighter monetary policy.
Food inflation in the world's second-fastest growing major economy eased marginally from a one-year peak in early January, but remained high enough to keep pressure on annual headline inflation in December and reinforce expectations of an interest rate rise this month.
Infosys Technologies fell 4.8 percent in its biggest one-day slide in 20 months, after it missed estimates for profit and future sales growth and warned of sluggish global economic growth. The 30-share BSE index fell 1.8 percent, or 351.28 points to 19,182.82, its lowest close in seven weeks and the outlook remained subdued. Twenty-four of its components declined. The 50-share NSE index closed 1.9 percent lower at 5,751.90.
"There is suddenly a lot of pessimism floating around," said Shishir Bajpai, senior vice-president of IIFL Private Wealth. Foreign funds have sold around $500 million of Indian equities since the new year began and the BSE index has shed 6.5 percent, spooked by inflation concerns that are also hurting other Asian emerging economies. Leading lenders State Bank of India, ICICI Bank and HDFC Bank dropped between 2.9 percent and 3.9 percent on worries the central bank would take a hawkish monetary stance at its policy on January 25. Declining shares outnumbered advancing ones in the ratio of 1.6:1 on low volume of 280 million shares.