Tuesday, February 26, 2013

India Shares Slip Early

MUMBAI--Indian shares were lower early Tuesday, tracking weakness in other Asian markets, with ICICI Bank and mortgage lender Housing Development Finance Corp. weighing on the market.

Market participants said investors have grown cautious ahead of the release of the federal budget Thursday. Of particular interest will be details about what steps the government will take to arrest the country's economic slowdown and efforts to control a widening fiscal deficit.

At 0446 GMT, the Bombay Stock Exchange's benchmark S&P BSE Sensex was down 0.6% at 19219.99 points, while the National Stock Exchange's 50-stock Nifty index was 0.6% lower at 5818.80 points.

The Nifty index could find strong support at 5800, a trader said.

"The markets could rebound later in the day helped by short-covering," he added.

ICICI was down 1.9% at 1073 rupees and Housing Development was 1.5% lower at 790.40 rupees.

Profit-taking weighed down other blue chips: energy-focused Reliance Industries was down 1.1% at 844.95 rupees and construction company Larsen & Toubro was 1.7% lower at 1378.10 rupees.

Maruti Suzuki was down 2.2% at 1411.05 after the central bank said foreign institutional investors can't buy any more shares of the car maker as they have already reached the permissible limit under the portfolio-investment program.

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