Narendra Modi looked set to win a fourth successive term as the chief minister of Gujarat, a victory that could launch the prime ministerial ambitions of one of the country's most popular but controversial leaders. With parliament's winter session ending on Thursday, the rally's extension would not depend on how well RBI manages slowing growth and sticky inflation. "The credit policy is something we are looking forward and then the budget session will keep markets busy," said Vaibhav Sanghavi, director at Ambit Capital.
In the medium term, the outlook is bullish and the coming two years will be good for equities, he added. The benchmark BSE index fell 0.11 percent, or 22.08 points, to end at 19,453.92, after marking its near 2-week closing high on Wednesday. The broader NSE index fell 0.22 percent, or 13.20 points, to end at 5,916.40, although closing above the psychologically important 5,900 level. Tata Motors fell on profit-taking after rising 7.9 percent in the previous five sessions after stronger-than-expected November sales at Jaguar Land Rover reduced concerns about the outlook for the key unit of the Indian auto maker.
Adani Group stocks fell on profit-taking after gaining recently on expectations Narendra Modi would win a fourth successive term in India's Gujarat state. Adani Enterprises Ltd fell 7.1 percent ahead of its planned sale of 23 million shares on Friday. Adani Ports and Special Economic Zone Ltd ended 3.6 percent lower, after rising 11.6 percent in December as of Wednesday's close, while Adani Power Ltd shares fell 5 percent after gaining 29.2 percent this month.
Shares in Shasun Pharmaceuticals fell 6.9 percent after Vertex Pharmaceuticals warned on Wednesday its hepatitis C drug Incivek, which is used in conjunction with two other products, can cause serious, potentially fatal skin reactions. However among stocks that gained, Tata Steel gained 1.8 percent, JSW Steel ended 2 percent higher after China said it will scrap a 40 percent export duty on metallurgical cokefrom next year. Tata Consultancy Services ended 1.6 percent higher, gaining for a second day after its management reiterated its positive forecast for fiscal years 2013 and 2014 in a meeting with analysts on Monday.