Indian shares closed down 0.9 percent on Friday on caution ahead of the central bank's policy review next week, with Larsen & Toubro among the big losers after the engineering and construction conglomerate cut its order growth outlook. The main 30-share index ended down 151.25 points at 16,785.64 points, with only seven of its components advancing. It posted a loss of 1.7 percent for the week.
"With food inflation crossing 10 percent on Thursday, it was certain that the RBI (Reserve Bank of India) will hike raise when it comes out with the policy on October 25," Kishor Ostwal, Chairman and Managing Director at CNI Research said. L&T shares fell as much as 4 percent before closing down 3.6 percent, their biggest single day loss in nearly a month. The firm, which posted a 4.3 percent rise in quarterly net profit, beating street estimates, slashed its order growth guidance for the current fiscal year on slowing investments and rising competition.
Shares in Maruti Suzuki rose 1.6 percent after the country's largest carmaker said a labour unrest at its Manesar plant had been resolved and operations at the facility would start on Saturday. Motorcycle makers Hero MotoCorp and Bajaj Auto rose 1.1 percent and 1.72 percent, respectively, on robust sales growth expected in the run to the festive season. The 50-share NSE index ended down 0.82 percent at 5,049.95 points. In the broader market, there were 525 advances and 905 declines on a total volume of 461.6 million shares.
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