Indian shares fell for the third week in four on Friday, hurt by slower April industrial output growth and weak world equities, and a lack of positive triggers kept next week's outlook subdued. Financials led the losses on concerns slowing industrial growth could lead to a decline in demand for loans.
India's industrial output growth dipped in April, the latest sign that the rising cost of credit and inflation are slowing the economy, which may compel the central bank to pull back from its aggressive monetary policy tightening. The 30-share BSE index fell 0.63 percent, or 116.36 points, to 18,268.54 points, taking losses for the week to 0.6 percent. Twenty-four of its components declined.
"The market came off as the industrial output data came in below expectations. Also, globally things are uncertain, which adds to the woes," said Nitin Rakesh, CEO of Motilal Oswal's asset management business. Foreign funds have bought around $260 million of shares in June, after selling $1.2 billion in the previous month. A declining trend in volumes was also worrying, dealers said, pointing that the five-day daily average volume on the NSE stood at 460 million, lower than its 90-day average daily volume of 615 million shares.
Around 468 million shares changed hands on NSE on Friday. The 50-share NSE index dropped 0.6 percent to 5,485.80 points. In the broader market, losers were nearly twice the number of the gainers. Top lender State Bank of India slipped 0.9 percent, while leading private lender ICICI Bank shed 1.2 percent. HDFC Bank closed barely changed. Mortgage lender Housing Development Finance Corp shed 0.5 percent. Cigarette to hotels firm ITC declined 1.7 percent as the stock went ex-dividend, dealers said.
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