Indian shares hit two-week low

Indian shares fell for the third straight day on Friday, hitting their lowest close in over two weeks as Mahindra and Mahindra declined on concerns over weak monsoon, while other blue chips slipped on risk aversion related to Iraq violence. Oil held near $115 a barrel on Friday, close to a nine-month high, and was headed for its second weekly gain on increased risks of disruption to supply from Iraq.
The monsoon has covered half of India's landmass four days behind the usual schedule, failing to recover from a late start that has slowed sowing of summer crops in a country where half of the farmland still lacks irrigation.
Indian shares also ended down for the second consecutive week on profit-taking after touching record highs on June 11 and worries over escalating tensions in Iraq. Investors will be closely monitoring the progress of monsoon and the budget due by mid-July for near-term direction.
"We feel that, a progressive budget as well as other reform initiatives will likely lead to continued outperformance of Indian indexes versus emerging market peers," said Dipen Shah, head of private client group research, Kotak Securities.
However, a continued rise in crude oil prices would be negative for India's current account, rupee and inflation, Shah added.
The benchmark BSE index fell 0.38 percent, or 96.29 points, to end at 25,105.51. For the week, it closed down 0.48 percent.
The broader NSE index lost 0.39 percent, or 29.25 points, to end at 7,511.45, also falling 0.4 percent over the week.
Both indexes also marked their lowest close since June 5.
Mahindra and Mahindra Ltd fell 2.7 percent on worries that weak monsoon may hit its tractor sales, investors said.
ICICI Bank fell 1.1 percent, while State Bank of India lost 0.9 percent.
Reliance Industries ended down 0.5 percent while Oil and Natural Gas Corp fell 0.8 percent.
Among other blue chips, Sun Pharmaceutical Industries fell 1.7 percent and Larsen & Toubro lost 0.5 percent.
Among stocks that gained, Indian jewellery maker Titan Co Ltd surged 4.2 percent after a rally in gold prices and on a bullish report by Bank of America Merrill Lynch.
KPR Mill Ltd ended 6.3 percent higher after earlier marking a record high of 253.15 rupees on hopes of power cost savings and debt repayment in their sugar business, multiple dealers said.