Indian shares down

12 Mar, 2005

India's key share index fell on Friday, giving up the weeks' gains, as investors turned edgy near all-time highs. The benchmark 30-share Mumbai Sensex fell 0.78 percent to 6,853.73 points, 95 points off the day's peak and further away from Wednesday's record high of 6,954.86. "With the Sensex failing to hit the 7,000-point-mark over the past three days, traders have booked profits after the post-budget rally," said Rakesh Kumar, head of equity sales at Pranav Securities Ltd.
India's stock market has been lifted by a broadly pro-growth budget and expectations of a robust earnings season in April.
Overseas portfolio investors have pumped nearly $3.3 billion into stocks this year, more than a third of the record $8.5 billion for all of 2004, on expectations that annual economic growth of 7 percent will boost corporate earnings.
Leading Friday's decline was index heavyweight Oil and Natural Gas Corporation Ltd, India's largest oil and gas exploration and production company, which fell 2.1 percent.
Reliance Industries Ltd, India's top petrochemicals company with a 11.35 percent weighting in the index, fell 1.1 percent.
Tata Iron and Steel Co, India's top private-sector steel maker, rose 2.2 percent, while state-run Steel Authority of India Ltd rose 2.1 percent.
Bonds edged higher, helped by a fall in oil prices and a slower-than-expected rise in domestic inflation. The 10-year benchmark bond yield dipped to 6.5574 percent from the previous close of 6.5743 percent.

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