Indian shares hit by profit-taking ahead of earnings, inflation data

Reuters - UK Focus

* BSE index falls 0.38 pct; NSE ends 0.3 pct lower

* Indian banks slip on central bank panel report

* Breather likely for record-setting Indian shares

* Software (Xetra: 330400 - news) stocks gain ahead of Infosys (NYSE: INFY - news) results

By Abhishek Vishnoi

MUMBAI, April 11 (Reuters) - Indian shares fell on Friday,

retreating from record highs hit in the previous session as blue

chips such as Reliance Industries declined ahead of

quarterly earnings and inflation data due next week.

Sentiment was also hit by a slide in global shares as steep

falls in U.S. technology and biotechnology stocks spread to

other sectors and regions.

After a week in which both the BSE and NSE indexes

hit record highs, investors are bracing for consumer

inflation data due on Tuesday, the same day that Infosys

is due to post quarterly earnings.

The events will provide a snapshot on the Indian economy,

which many analysts say continues to struggle. Data on Friday

showed the trade deficit widening to $10.51 billion

in March from $8.13 billion in February on lower exports.

"The firm trend in the Sensex continued. The broad theme

remained the same with domestic cyclicals outperforming the IT

and FMCG sectors," said Dipen Shah, head of private client group

research at Kotak Securities.

The benchmark BSE index fell 0.38 percent, or 86.37

points, to end at 22,628.96. The index rose 1.2 percent for the

week, marking its third consecutive weekly gain.

The broader NSE index lost 0.3 percent, or 20.10

points, to end at 6,776.30, but gained 1.22 percent for the

week.

Indian equity, forex and debt markets will be closed on

Monday for a local holiday.

Among blue-chips, Reliance Industries fell 1.6 percent,

while Larsen & Toubro ended 1.2 percent lower.

Bank shares fell 0.8 percent after a central bank

panel recommended a slew of measures, including potentially

changing how lending rates are set for the sector, raising

worries about overall profitability.

ICICI Bank (NYSE: IBN - news) fell 0.9 percent, while Axis Bank (BSE: AXISBANKSL.BO - news)

ended 0.5 percent lower.

Indusind Bank slid 4.3 percent on caution ahead of

its March-quarter earnings on Wednesday.

State Bank of India (BSE: SBI.BO - news) lost 1.7 percent and Bank of

Baroda fell 1.2 percent.

Tata Motors fell 1.7 percent after making an

all-time high of 437.80 rupees after its unit Jaguar Land

Rover's retail volumes for March came marginally

below some analysts' estimates at 55,183 units.

Adani Enterprises Ltd slumped 6.8 percent as

investors chose to book profits after the stock rose 22.9

percent on Thursday, marking its biggest single day percentage

gain ever.

However among stocks that gained, Piramal Enterprises Ltd

rose 6.2 percent, adding to Thursday's 2.9 percent

gain after Britain's Vodafone said on Friday it had

taken full ownership of Vodafone India by buying the 11 percent

it did not already own from the company.

Infosys gained 1.1 percent ahead of its March-quarter

earnings on Tuesday, while Tata Consultancy Services

rose 1.8 percent.

Also, Infosys said on Friday the company had started a

search for chief executive S.D. Shibulal's successor and

appointed Egon Zehnder to assist the nominations committee in

identifying external candidates.

For additional stocks on the move double click

FACTORS TO WATCH

* Yen ends strong week with dip, euro grinds higher

* Brent drops towards $107 as supply outlook improves

* World equities hit two-week low

* Foreign institutional investor flows

* For closing rates of Indian ADRs

ASIA-PACIFIC STOCK MARKETS:

Pan-Asia........ Japan....... S.Korea...

S.E. Asia.......

Hong Kong... Taiwan....

Australia/NZ....

India....... China.....

OTHER MARKETS:

Wall Street ....

Gold ....... Currency..

Eurostocks.....

Oil ........ JP bonds...

ADR Report .....

LME metals. US bonds..

Stocks News US.. Stocks News Europe

DIARIES & DATA:

Indian Data Watch Asia earnings diary

U.S. earnings diary European diary

Indian diary Wall Street Week Ahead

Eurostocks Week Ahead

TOP NEWS:

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(Editing by Anand Basu)

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