MUMBAI, July 1 (Reuters) – Indian shares got off to a shaky start to the new quarter, falling 1.1 percent on Thursday as doubts resurfaced about the global economic recovery and a slower manufacturing growth at home.
A survey showed Indian manufacturing growth cooled in June from a surge in activity the prior month, mainly due to slowing production and rapidly easing input price pressures. [ID:nBMA007940]
Leading car maker Maruti Suzuki (MRTI.BO) fell as much as 3.1 percent after sales growth in June slowed from the previous month, partly due to a 6-day shutdown of its plants for maintenance work. [ID:nSGE660080]
Asian stocks dropped as manufacturing data showed China’s rapid economic growth was slowing and as fresh worries about Europe’s fiscal health hit risk appetite.
“The scene is not looking good in the near term. We have some or the other bad news coming in from Europe every other day,” said Kunal Sukhani, manager of institutional equities at brokerage Asian Markets Securities.
Shares in Fortis Healthcare (FOHE.BO) swung widely after the company launched a bid valuing Singapore hospital operator Parkway Holdings (PARM.SI) at $3.1 billion, topping a bid by rival suitor Malaysian state fund Khazanah. [ID:nSGE66002F]
By 11:17 a.m. (0547 GMT), the 30-share BSE index .BSESN was trading down 1.07 percent at 17,512.18, with 27 of its components declining.
Fortis was trading 1.5 percent higher after falling as much as 3.4 percent.
Financials dropped ahead of food and fuel price data due around 0630 GMT.
Top lender State Bank of India (SBI.BO) was down 1.1 percent while rivals ICICI Bank (ICBK.BO) and HDFC Bank (HDBK.BO) dropped 2.4 percent and 0.7 percent respectively.
In the broader market, gainers and losers were almost equal in number on volume of 169 million shares.
The 50-share NSE index was down 1.2 percent at 5,250.25.
The BSE index rose 4.5 percent in June, posting its best monthly gain since March. The rise was powered by foreign funds who pumped in $2.1 billion June 1-29, reversing withdrawal of $2 billion in May when the benchmark fell 3.5 percent.
For April-June, the index rose 1 percent, climbing for the sixth straight quarter in its longest run in at least 20 years.
STOCKS ON THE MOVE
* TVS Motor Co (TVSM.BO) was up 1.6 percent at 121.15 rupees as June two-wheeler sales of the No. 3 motorcycle maker rose 36 percent from the same period a year earlier. [ID:nBMB010904]
* Drug maker Parabolic Drugs (PARB.BO) (PARB.NS) debuted on the BSE at 76.8 rupees, up 2.4 percent from its issue price of 75 rupees. [ID:nSGE660056]
The stock erased all gains and was trading lower at 66.95 rupees.
MAIN TOP 3 BY VOLUME
* Redington (REDI.BO) on 11.5 million shares
* IFCI (IFCI.BO) on 6.4 million shares
* Parabolic Drugs on 3.9 million shares
FACTORS TO WATCH * For technical analysis double click on www.reutersindia.net * Indian rupee report [INR/] * Indian bond report [IN/] * Euro hits record low vs Swiss franc, Aussie down [FRX/] * Oil tumbles 4th day on China economic growth worries [O/R] * Stocks, commodities fall on China slowdown [MKTS/GLOB] * Wall St tumbles to worst quarter since Lehman fall [.N] * For closing rates of Indian ADRs INADR (Reporting by Ami Shah; Editing by Ranjit Gangadharan)