Indian shares posted their biggest monthly decline in six months and closed 0.1 percent lower on Friday as investors fretted over slowing domestic growth after a series of interest rate increases and the possibility of a US debt default.
The market is expected to be rangebound in August on views most known negatives were in the price even as investors stay wary of risky assets due to US and euro zone's debt concerns. State-run explorer Oil & Natural Gas Corp fell 2.9 percent after it reported quarterly profit that missed street estimates as higher subsidy payments offset gains from a rise in crude oil and gas prices.
ICICI Bank firmed 1.9 percent after the top private sector lender said it expects loan growth at 18 percent for the current fiscal year and net interest margin should be maintained at 2.6 percent. The main 30-share BSE index closed 0.07 percent, or 12.32 points, lower at 18.197.20 points, with 18 components losing ground.
The 50-share NSE index slipped 0.1 percent to 5,482 points. Market breadth was weak, as losers exceeded gainers in the ratio of nearly 2:1 on the NSE, while 678 shares were dealt, higher than the 90-day daily average volume of 584 million shares. It lost 2.8 percent this week, its biggest weekly decline since the first week of May, and fell 3.4 percent in July - its biggest monthly fall since January.
Foreign fund inflows into Indian shares have been fluctuating since last week, trimming their inflows since June 23 to around $2.8 billion. Indian equities have been one of the worst performing ones among major markets in 2011, as hardening interest rates and a slowdown in growth engine hurt. Top carmaker Maruti Suzuki advanced 1.8 percent after workers at its plant in the northern Indian state of Haryana ended a strike on Thursday.
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