Indian shares ended slightly lower on Monday after a surprise contraction in industrial production and other data showing a fall in exports and high consumer inflation deepened fears about the Indian economy, hitting capital good stocks especially hard.
However, United Spirits shares posted their biggest single-day share gain since at least 1995 after its stake sale to Diageo spurred upgrades from several analysts, who called the deal "transformational" and a "game changer". India's benchmark BSE index fell 0.07 percent, or 13.34 points, to end at 18,670.34. The 50-share NSE index fell 0.04 percent, or 2.55 points, to 5,683.70.
Both indexes fell for a third consecutive session. Markets will be opened on Tuesday for a short trading session during the Diwali public holiday, and will close on Wednesday. Capital good stocks were among the day's leading decliners after industrial output unexpectedly fell 0.4 percent in September, well below expectations for a 2.8 percent advance.
The manufacturing output slumped 1.5 percent from a year earlier, the data showed, sending Larsen & Toubro Ltd, India's top construction and engineering company, down 0.9 percent. Smaller rival Punj Lloyd Ltd fell 1.4 percent. Other data on Monday showed India's trade deficit last month reached $20.9 billion as exports fell but imports jumped, while consumer price inflation rose 9.75 percent in October.
Companies posting weak earnings also suffered on Monday. Tata Steel Ltd fell 1.7 percent after reporting a surprise July-September loss on Friday as weakening demand and prices in its main European market offset a solid performance at home. Coal India, the world's largest coal producer, fell 0.6 percent after it narrowly missed estimates with a 19 percent rise in second-quarter profits on Friday.
Jaypee Infratech, which builds roads and other infrastructure projects, retreated 1.6 percent after saying on Monday its July-September net profit fell 41.8 percent from a year earlier. However, among gainers, United Spirits surged 34.7 percent, hitting earlier its highest since January 2008 after Morgan Stanley, J.P.Morgan and CLSA raised their ratings to the equivalent of a buy. State Bank of India rose 1.6 percent after Standard Chartered said India's biggest lender over-estimated its gross slippage for the July-September quarter, according to an email sent to clients.
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