Indian shares provisionally end down, led by fall in shares of banks such as ICICI Bank and Axis Bank, that fell on concerns of rising impaired loans and as trading volumes continue to remain low ahead of a European Central Bank meeting.
UPDATE 1-Morgan Stanley downgrades India’s Axis Bank; shares fall

MUMBAI, Sept 5 – Morgan Stanley downgraded its rating on India’s Axis Bank to “underweight” from “equal weight”, saying it expects the bank’s impaired loans to increase.

MARKET EYE-Indian shares extend fall; banks hit

* India’s BSE index fell 0.6 percent, while the 50-share NSE index also fell 0.71 percent, led by fall in private banks such as ICICI Bank and Axis Bank that fell on concerns of rising impaired loans. * Fitch Ratings says fiscal 2013 impaired assets across the banking sector may exceed its initial forecast as the economy slows. * Axis Bank declines 4.27 percent, while ICICI Bank falls 2.6 percent. * Kotak Securities sees a “subdued outlook” for Reliance Industries’ refining and chemical cycles

MARKET EYE-Reliance refining cycle outlook subdued-Kotak Sec

* Kotak Securities sees a “subdued outlook” for Reliance Industries’ refining and chemical cycles over the next 12-18 months, given unfavourable global supply-demand balance. * Says higher proportion of other income in the earnings “will keep ROEs suppressed” in the near term. * The brokerage said in a note that it also see risks to growth in global oil demand from potential slowdown in the global economy. * Says upstream segment unlikely to surprise positively, rules out any revival in product

MARKET EYE-Bank stocks fall on impaired loan concerns

* National Stock Exchange’s benchmark for banking stocks fell 1.5 percent on concerns of higher level of impaired assets across the banking sector due to a combination of global uncertainty and government’s reduced fiscal flexibility. * Fitch Ratings says fiscal 2013 impaired assets across the banking sector may exceed its initial forecast as the economy slows. * The rating agency adds that absolute cumulative gross NPLs reported at India’s five largest banks – accounting for over a third of th

MARKET EYE-Oil companies rise; diesel price hike hopes rekindle

* Shares in oil marketing companies rose on media reports of a potential hike in diesel and other fuel prices after the monsoon session of Indian parliament ends on Friday, dealers say. * Analysts say state-run oil marketing companies sell diesel at a loss of 17 rupees a litre, kerosene at 32 rupees a litre and domestic LPG at 347 rupees per cylinder. * Hindustan Petroleum Corp rose 0.9 percent, Bharat Petroleum Corp rose 1.3 percent, while Indian Oil Corp rose 1 percent. (abhishek.vishn

MARKET EYE-Indian shares down; ECB meet eyed

* India’s BSE index was down 0.25 percent, while the 50-share NSE index also fell 0.39 percent. * Fall was in line with Asian peers that hit five-week lows as investors grew edgy ahead of a European Central Bank meeting on Thursday. * Tech shares leading the fall: Infosys falls 0.52 percent, while Wipro declines 0.9 percent. * Morgan Stanley downgraded India’s Axis Bank to “underweight” from “equal weight” and cut its target price on the stock to 800 rupees from 900 rupees, citing rising impair

Morgan Stanley downgrades India’s Axis Bank; shares fall

MUMBAI, Sept 5 – Morgan Stanley downgraded India’s Axis Bank to “underweight” from “equal weight” and cut its target price on the stock to 800 rupees from 900 rupees, citing rising impairments.