Indian shares slip

Indian shares edged 0.2 percent lower in a choppy trading session on Monday as an escalating Libyan crisis and firm oil prices weighed on investor sentiment. Oil prices rose by more than 1 percent on Monday as a United Nations mandated wave of air strikes on Libya and proliferating unrest in the Middle East fanned concerns about oil supply from the region.
The 30-share BSE index closed 0.22 percent, or 39.76 points, lower at 17,918.59 points, with 17 of its components declining. It rose as much as 0.7 percent early. The 50-share NSE index shed 0.2 percent at 5,364.75. "People are cautious. The situation in Libya is worsening and all eyes are on oil prices. Let us see how the situation unfolds," said Deven Choksey, managing director and CEO of KR Choksey Shares.
The benchmark index is already down 13 percent year-to-date, making it one of the worst performing major markets in 2011. The broader MSCI's measure of Asian markets other than Japan is down 4.1 percent in 2011, while MSCI's emerging markets index has shed 3.7 percent in the period.
Foreign funds have pulled out $1.8 billion from Indian equities since the start of the year up to March 17, pestered by sticky inflation. Amongst the BRIC nations, Indian witnessed highest net redemption at $183 million in the week to March 16, fund tracker EPFR said.
Global equity funds at large faced outflows in that week as the Japan disaster combined with a bloody revolt in Libya, protests in Bahrain and the downgrading of Portuguese debt undermined investor appetite. Airline companies closed in the red on fears the firm oil prices will dent their margins. Carriers Jet Airways and SpiceJet dropped nearly 3 percent and 1percent, respectively. Oil explorer Cairn India advanced 1 percent. Outsourcers dropped with the sector index declining 0.7 percent.
"Software stocks are richly valued, relative to other sectors. So, when FIIs (foreign institutional investors) are selling India, they are trimming their exposure to IT as well," said Rakesh Rawal, head of private wealth management at Anand Rathi Financial Services. "There is nothing otherwise wrong with the sector." Top outsourcer Tata Consultancy Services declined nearly 1 percent, while Infosys and Wipro dropped 0.7 percent and 1.3 percent, respectively.