President- Private Client Group Research, Kotak Securities: The Sensex traded in the negative zone today only to partly recover in the latter part of the day. The fall in the markets was led by global cues as well as ITC which closed down 6% on back of news-reports that the government is contemplating a steep hike in excise duty on cigarrates. During the day, the government announced that the Union Budget would be presented on 10th july. From hereon, the markets would be looking forward to the union budget and its likely measure at invigorating growth, reducing inflation and correcting the fiscal deficit.
Indian shares inch down; ITC slumps most in about 10 months
(Reuters) Indian shares fell for a fourth straight session on Monday, marking their lowest close in 2-1/2 weeks as ITC Ltd slumped the most in ten months on tax worries, while concerns over high oil prices feeding inflation continued to weigh.
Brent crude was up at around $115 a barrel on Monday, supported by worries about potential disruptions to supply from Iraq where Sunni insurgents took control of strongholds along the border with Syria at the weekend.
Falls also tracked European stocks after euro zone business activity data showed growth slowing, with France a notable laggard, in contrast with upbeat numbers from China.
Also, overseas investors sold Indian shares worth 2.20 billion rupees ($36.85 million) on Friday, provisional exchange data showed.
Investors also turned cautious ahead of the new government's budget on July 10, which will hold details of the borrowing plan for 2014/15.
"There is an uncertainty and people are waiting for budget for clarity on major policy issues. However, market is optimistic and is expecting some real good measures. That is why we are not seeing any heavy selling," said Suresh Parmar, head, institutional equities at KJMC Capital Markets
The benchmark BSE index lost 0.3 percent, or 74.19 points, to end at 25,031.32.
The broader NSE index fell 0.24 percent, or 18.10 points, to end at 7,493.35, closing below the psychologically important 7,500 level.
Both indexes marked their lowest close since June 5.
India's biggest cigarette manufacturer ITC slumped 6.2 percent, its biggest single-day fall