MUMBAI, July 14 (Reuters): Indian shares remained under pressure on Monday, falling for a fifth consecutive session as foreign investors turned sellers, hitting blue-chips such as ICICI Bank and Hindustan Unilever.
Overseas investors sold shares worth 7.23 billion rupees ($120.6 million) on Friday, after buying $1.6 billion worth of stocks in six straight sessions to Thursday, exchange and regulatory data showed.
The selling comes after foreign funds had largely been behind a near 20 per cent rally in Indian shares this year. Analysts cited disappointment with the Narendra Modi-led government's maiden budget, which lacked major reforms or enough details about how to meet ambitious fiscal deficit targets.
The selloff on Friday was attributed to worries that the controversial general anti-avoidance rules for foreign investors would be implemented starting next year, although a senior finance ministry official clarified on Monday the government was yet to take a formal stance on the matter.
Still, some analysts said they did not expect further falls. Data after the close of markets on Monday showed consumer price inflation easing to 7.31 per cent in June from a year earlier, the lowest since the government started releasing the data in 2012.
"The budget euphoria is over. And we have seen a meaningful correction, which is giving an opportunity to add quality stocks to the portfolio. There could be some minor corrections, but the undercurrent is still positive," said Deven Choksey, managing director, KR Choksey Securities.
The benchmark BSE index ended 0.07 per cent lower at 25,006.98 points. The broader NSE index also edged down 0.07 per cent to 7,454.15.
Recent outperformers among blue-chips continued to be hit by profit-taking. Hindustan Unilever Ltd fell 2.94 per cent, while ICICI Bank ended 0.91 per cent lower, and Bharti Airtel Ltd finished 1.01 per cent down.
