BENGALURU, Oct 25 (Reuters) - Indian shares fell on Monday,
dragged by information technology and consumer stocks, while
strong earnings from private sector lender ICICI Bank drove a
key banking index to a record high.
The blue-chip NSE Nifty 50 index was down 0.3% at
18,059 by 0505 GMT, while the benchmark S&P BSE Sensex
fell 0.3% to 60,617.93.
Shares of ICICI Bank rose 14.2% to an all-time
high and helped the Nifty bank index reach a fresh
peak, after the lender posted an about 25% surge in quarterly
profit on Saturday.
The bank index rose 1.9%, while the fast moving consumer
goods index and the IT sub-index fell
1.1% and 2%, respectively.
"For FMCG companies, the rural growth which was strong is
slowly tapering and there are high input costs. Going forward,
we might see a muted top-line with lower margins," said Anita
Gandhi, director at Arihant Capital Markets in Mumbai, adding
valuation concerns were pulling down IT stocks.
The Nifty mid-cap index was down 2.6%, while
the small-cap index dropped 3%.
Analysts said the fall in small- and mid-cap stocks
indicated retreating flows from retail investors after getting
caught in a correction last week.
The Nifty mid- and small-cap indexes fell more than 4% and
5%, respectively, last week.
Meanwhile, the Nifty bank index has gained over 9% so far
this month, outperforming a more than 2% gain in benchmark
"This outperformance is justified by the bank results so far
and the trend may continue since there is valuation comfort in
the banking segment in an otherwise overvalued market," said V K
Vijayakumar, chief investment strategist at Geojit Financial
Domestic institutional investors sold $600 million worth of
equities in capital markets last week while foreign investors
offloaded about $343 million, Refinitiv data showed.
(Reporting by Nallur Sethuraman and Gaurav Dogra in Bengaluru;
Editing by Subhranshu Sahu)