central bank of india week, leading to doubts on their near-term moves. "The near-term outlook is clouded by event risk," saidShankar Char, vice-president and head of sales trading at ICICI
Securities. "Developments in Europe, likely rating agency actions
Reserve Bank of India's policy and domestic earnings -- there
are too many things. It is all a wait-and-watch." The 50-share NSE index shed 0.3 percent to 5,581.1points.
ICICI Securities' Char said investor caution was reflected
in anaemic volumes, which on the NSE dropped to 445 million
shares from the average 90-day daily volume of 580 million
shares. "I think that FIIs are just shifting money from one
geography to another. Does not look like there are a lot of
fresh flows," said Sunder Subramaniam, senior manager of sales
at brokerage Sharekhan. "With Europe in trouble, we may benefit in the short run in
terms of diversion of flows, but overall risk appetite is coming
off," Subramaniam added. Financials led the drop, with the banking sector index
shedding 0.3 percent on concerns the central bank may
raise rates at its review on July 26 to tame sticky inflation. Inflation in Asia's third-largest economy quickened in Jundriven by higher prices of manufactured goods and fuel, data
showed on Thursday. Leading private-sector lenders ICICI Bank and top
mortgage lender Housing Development Finance
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