Indian shares slip

Indian shares fell on Friday led by lenders such as ICICI Bank after the central bank again indicated reluctance to ease interest rates despite slowing economic growth, although indexes still posted a fourth consecutive weekly gain. The Reserve Bank of India said on Thursday fighting inflation remained the cornerstone of its monetary policy, while urging the government to cut spending.
Indian indexes have steadily gained thanks to strong inflows from foreign investors, but caution is growing as an uproar in parliament over potential corruption in the sale of coal concessions to private companies raises fears about delayed policy reforms. J.P. Morgan warned in a report on Friday that bullish investors are "now getting edgy" as reforms get delayed, and recommended investors hedge themselves for potential falls in the near-term.
"Markets remain a buy on dips" said Prakash Diwan, Chief Portfolio strategist, at Prakash Diwan Wealth Circle. India's benchmark BSE index fell 0.38 percent to end at 17,783.21, but rose 0.52 percent for the week. The 50-share NSE index declined 0.53 percent to 5,386.70 points, gaining 0.4 percent for the week.
Among decliners on Friday, ICICI Bank fell 2 percent, while State Bank of India declined 0.94 percent. The RBI has maintained its hawkish stance on inflation since last cutting interest rates in April, although analysts say a much weaker-than-expected economic growth data for the April-June quarter, due on August 31, could increase pressure on the central bank to change its stance.
Software service exporter Infosys shares fell 1.3 percent after surging 7 percent over the previous four sessions. Bank of America-Merrill Lynch warned discretionary IT spending, which makes up a good chunk of Infosys' revenues, has seen no pick-up, while demand from financial services "remains challenged" in the near-term, according to a note dated on Thursday.
Reliance Industries fell 1.6 percent, continuing to reel on worries about lower refining margins, with the energy conglomerate ending down 2.65 percent for the week. However, among gainers, Coal India rose 2.2 percent after the company proposed in its 2011/12 annual report to be able to buy back shares, which it cannot do under its current Articles of Association. Exide Industries jumped 3.8 percent.