Indian shares fall on profit-taking; wholesale inflation key

* BSE index falls 0.48 pct; NSE ends 0.49 pct lower

* Ranbaxy falls on USFDA concerns; brokers downgrade

* Yes Bank profit may beat estimates-StarMine

By Abhishek Vishnoi

MUMBAI, Jan 14 (Reuters) - Indian shares fell on Tuesday led

by declines in software exporters such as Tata Consultancy

Services Ltd on profit-taking after the recent run-up

on better-than-expected quarterly results by peer Infosys Ltd (NYSE: INFY - news) .

.

Falls also tracked weak global shares as a batch of weak

earnings pre-announcements in the United States sparked concerns

that the upcoming reporting season may disappoint, leaving some

indexes looking expensive after a bumper 2013.

After India's retail inflation in December eased to a

three-month low on Monday, traders are eyeing December wholesale

price inflation, seen at 7 percent and due Wednesday, and

considered to be key ahead of the central bank's rate review on

Jan. 28.

Retail prices rose an annual 9.87 percent last

month, slower than expected, as vegetable prices fell, giving

some relief to policymakers struggling to contain price

pressures as growth hovers at a decade low.

Also, a surprise contraction in industrial production and a

slowdown in merchandise exports growth, which have dampened

hopes of a rebound in Asia's third-largest economy, further

reduces the chances of a rate hike, dealers said.

"Growth for India has bottomed out and even valuations look

reasonable. Inflation has eased and I think a delay in rate

action by the RBI governor signifies he may side with growth,"

said Nandkumar Surti, managing director and chief executive

officer at JP Morgan Asset Management.

The benchmark BSE index fell 0.48 percent, or

101.33 points, to end at 21,032.88, after rising over 2 percent

over the last two consecutive sessions.

The broader NSE index lost 0.49 percent, or 30.90

points, to end at 6,241.85.

Software (Xetra: 330400 - news) companies fell on profit-taking after the recent

run-up on Infosys' better-than-expected quarterly

results.

Tata Consultancy Services Ltd fell 1.8 percent, HCL

Technologies Ltd ended down 1.7 percent and Wipro Ltd (BSE: WIPRO.BO - news)

lost 1.4 percent.

Infosys, however, closed 0.6 percent higher.

CMC Ltd (BSE: CMCSL.BO - news) fell 10.5 percent after its

October-December profit rose 15.53 percent to 705.4 million

rupees, falling short of some analysts expectations.

Ranbaxy Laboratories (BSE: RANBAXY.BO - news) fell 2 percent, adding to

Monday's 5.4 percent slump, after the U.S. Food and Drug

Administration raised concerns about manufacturing practices at

one of its factories.

India's retail stocks fell after the newly-elected

provincial government in India's national capital on Monday

barred foreign supermarkets from setting up shop, a blow to

Prime Minister Manmohan Singh's efforts to attract overseas

investment and revive the economy.

Trent Ltd (BSE: TRENT.BO - news) fell 2.7 percent while Shopper's Stop Ltd

ended 1.7 percent lower.

However, among other stocks that gained, Yes Bank Ltd

rose 2.3 percent a day ahead of its October-December

results.

The bank may beat consensus profit forecast when it reports

results, Thomson Reuters StarMine's SmartEstimates showed.

Cairn India Ltd rose 2 percent after mining

conglomerate Vedanta Resources Plc (Other OTC: VDNRF - news) said it received

99.89 percentage of votes in favour of a proposed share buyback

worth up to 57.25 billion rupees ($924 million) by its Indian

oil and gas unit.

For additional stocks on the move double click

FACTORS TO WATCH

* Dollar steadies after two-day fall, Nowotny helps euro

* Brent holds above $106 but brighter supply outlook drags

* Shares sell off on U.S. earnings worry

* Foreign institutional investor flows

* For closing rates of Indian ADRs

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OTHER MARKETS:

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Gold ....... Currency..

Eurostocks.....

Oil ........ JP bonds...

ADR Report .....

LME metals. US bonds..

Stocks News US.. Stocks News Europe

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(Editing by Sunil Nair)