Indian shares fall

Indian shares fell for a third consecutive session on Thursday, as lenders and other coal-related firms remained under pressure a day after the country's top court scrapped all but four of 218 coal blocks allocated by the government since 1993. The bank index of the NSE closed 2.8 percent lower as the court order raised concerns that loans to the holders of the permits could turn sour and pressure lenders already battling a rise in bad loans.
Power, steel and cement companies that won the blocks continued their slump on worries about the impact the de-allocation would have on their profits. Overseas investors, who were the backbone of the rally in Indian markets so far this year, sold shares for the second straight day. On Wednesday, the selloff was worth $130 million on Wednesday, exchange data showed.
"Concerns over the court verdict are not yet over. Even foreign investors have started cutting exposure, which is a real concern," said Suresh Parmar, head of institutional equities at KJMC Capital Markets. "However, the correction will give a really good chance to enter quality companies at better valuations," he added. India was the worst performing market in Asia on Thursday. Most of the Asian markets were higher, while the MSCI-Asia Pacific index excluding Japan fell 0.6 percent.
The benchmark BSE index closed 1.03 percent lower at 26,468.36 points, while the broader NSE index ended down 1.13 percent at 7,911.85. Caution also prevailed due to the expiry of monthly derivatives contracts. Banking stocks led the decliners with heavyweights such as State Bank of India slumping 4.4 percent and ICICI Bank ending 3.4 percent lower as investors interpreted the court ruling as a negative for the sector.
Coal stocks continued their slump. Jindal Steel and Power fell 7.7 percent while Hindalco Industries Ltd ended 4.5 percent lower due to concerns about the future of the coal blocks. Jaiprakash Associates fell 19 percent after the company called off a deal on Wednesday to sell its hydropower businesses to Reliance Power Ltd. Among the gainers, software exporters rallied after global rival Accenture said it expected better profitability for its fiscal year. Tata Consultancy Services ended 2.5 percent higher, while Infosys Ltd gained 1.3 percent.