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MARKET YESTERDAY

Indian Stocks Fall to One-Week Low, Led by Reliance Industries

May 11 (Bloomberg) -- India's stocks fell to the lowest in more than
a week, led by Reliance Industries Ltd., on concern political
uncertainty may harm the markets as the ruling party and its allies
may not win enough votes to form the government.

Reliance Industries, India's biggest company by market value, dropped
2 percent, while Larsen & Toubro Ltd., the nation's largest
engineering company declined 2.8 percent. Hindustan Unilever, the
country's No. 1 household products maker, lost 2.5 percent on concern
it may face more competition.

"Investors are waiting for the outcome of the election results before
making fresh commitments," said Mahesh Patil, who helps manages $1
billion in equities at Birla Sun Life Mutual Fund in Mumbai.

The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 193.44,
or 1.6 percent, to 11,682.99, the lowest since April 29. The S&P CNX
Nifty Index on the National Stock Exchange declined 1.8 percent to
3,554.60. The BSE 200 Index dropped 1.6 percent to 1,381.24. SGX Nifty
futures for May delivery retreated 2 percent to 3,555.5.

Reliance Industries retreated 2 percent to 1,861.6 rupees, the biggest
drop since April 28. Larsen & Toubro declined 2.8 percent to 963.8
rupees. The two companies made up 32 percent of the Sensex's decline
today.

"People are booking profits before the election results," said
Mohit Mirchandani, head of equity investment at Taurus Mutual Fund,
who helps manage the equivalent of $34 million. "Nobody wants to
carry forward positions before such a big event. Markets will remain
volatile for some time."

Narrow Lead

Opinion polls conducted by television networks including Star News
before polling started on April 16 gave the ruling Congress Party and
its allies a slender lead over rivals. The alliance may still win
fewer seats than required to form the next government, the surveys
showed.

Hindustan Unilever fell 2.9 percent to 226.05 rupees. The company
posted a 3.7 percent increase in profit in the quarter ended March
after a one-time charge for retirement benefits and restructuring.

Net income increased to 3.95 billion rupees ($80 million), lagging
behind the 4.51 billion rupee median estimate of 15 analysts surveyed
by Bloomberg News. Net income before one-time items rose 20 percent,
the company said.

"Decline in market share and volume is pulling Hindustan Unilever's
stock down," said Anand Shah, an analyst at Angel Broking Ltd. in
Mumbai.

The following stocks were among the most active on the exchange:

Ashok Leyland Ltd. (AL IN) fell 5 percent to 20.95 rupees. The
country's second-largest maker of trucks and buses said it sold 1,750
vehicles in April, compared with 5,705 a year earlier. The company
produced 2,956 vehicles in April, compared with 6,660 a year earlier.

Essel Propack Ltd. (ESEL IN) rose 20 percent to 18.50 rupees. The
laminated tube maker catering to oral care may buy a controlling stake
in England's tube maker Betts after the Essex- based company was
placed in administration, following a breach of banking covenants, the
Economic Times reported, citing people close to the development. Essel
Propack said in a statement to the Bombay Stock Exchange the report is
speculative.

Tata Steel Ltd. (TATA IN) lost 4.2 percent to 270.65 rupees. The
company's U.K. unit asked lenders to relax terms on about 3.6 billion
pounds ($5.4 billion) of loans, according to two people familiar with
the negotiations.