Indian shares falter; output data reinforces economic concerns

 

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".
 
    The weak data is due to add pressure on the government to
take more action to revive growth after already announcing a
slew of fiscal and economic measures in September, including
opening up the multi-brand retail sector to foreign investors.
    That's especially the case as the Reserve Bank of India has
signalled it won't cut interest rates until the January-March
quarter, shifting the focus to the parliament session due to
re-start on Nov. 22.
    "Focal point for the near term direction would remain how
the parliament session goes," said Aneesh Srivastava, Chief
Investment Officer of IDBI Federal Life Insurance.
    "Focus would be on decision making and reforms," he said.
    India's benchmark BSE index fell 0.07 percent, or
13.34 points, to end at 18,670.34.