Indian Stock Market Today
MUMBAI: Oct 15 - Indian shares shed 0.2 percent on Thursday after an initial rise to a 17-month high triggered profit-taking, but slower-than-expected inflation kept the undertone firm.
Export-driven outsourcers such as Infosys Technologies(INFY.BO: Quote, Profile, Research) and Tata Consultancy (TCS.BO: Quote, Profile, Research) that get more than half their revenue from North America fell as the rupee climbed towards a 13-month high.
Financial issues such as State Bank of India (SBI.BO: Quote, Profile, Research) and
ICICI Bank (ICBK.BO: Quote, Profile, Research) rose on hopes the central bank would hold
rates at its policy review on Oct. 27 to help support consumer
spending.
Annual inflation rose at an unexpectedly slower pace at the
start of October, easing pressure on the central bank to
tighten its monetary stance at the review. [ID:nDEL483609]
The widely watched wholesale price index INWPI=ECI rose
by 0.92 percent in the 12 months to Oct. 3, well below market
forecasts but above the previous week's 0.7 percent annual
rise.
Analysts expect the central bank to talk tough on inflation
but hold off for now on an inevitable increase in interest
rates when it reviews policy as fostering a recovery in growth
takes precedence. [ID:nHKG484639]
"The central bank is likely to hike rates in the first
quarter of 2010 rather than now because some of the rise in
industrial production and wholesale prices is temporary," said
Ramya Suryanarayanan, economist at DBS in Singapore.
The 30-share BSE index .BSESN closed down 0.21 percent,
or 35.91 points, at 17,195.20, with 18 of its components
declining. It rose to 17,350.39 in early deals, its highest
since May 20, 2008.
Rajen Shah, chief investment officer at Angel Broking, said
the market was fairly priced after the sharp rally this year.
"We are advising our clients to gradually book profits and
free more cash," he said.
The benchmark index has more than doubled from its 2009 low
in March and is up around 78 percent since the start of
January, bolstered by foreign portfolio investment of $13
billion so far this year.
The inflow has been rising on the back of a recovering
economy, with August industrial output growing an annual 10.4
percent, the fastest pace in 22 months.
The large foreign investments have underpinned the rupee,
which climbed to 45.8 against the dollar in early trade taking
gains to 14 percent from a record low in early March and
spooking exporters.
Infosys fell 1.8 percent to 2,215.65 rupees and bigger
rival Tata Consultancy dropped 1.7 percent to 582.45 rupees.
"When most of the earnings are in dollar terms, the dollar
depreciation is no doubt a negative for the IT sector and it
would have an implication on bottomline as well as topline,"
said Manik Taneja, analyst at Emkay Global Financial Services.
State Bank, the country's leading lender, advanced 2.7
percent to 2,330.45 rupees and rival ICICI Bank rose 1.7
percent to 935.90 rupees on hopes an expanding economy would
boost demand for loans.
Morgan Stanley raised its forecast for India's economic
growth to 6.4 percent for the fiscal year to March on robust
factory data and said policy rates could be rise before
end-2009 if the expansion was maintained. [ID:nBOM442611]
Energy giant Reliance Industries (RELI.BO: Quote, Profile, Research), which has the
heaviest weight in the main index, shed 0.3 percent to 2,171.40
rupees as investors locked in profits after the stock had
climbed 3.7 percent over two sessions.
A senior company official said on Wednesday Reliance could
finalise a deal to buy refinery and petrochemical units in the
United States and Europe by end-2009. [ID:nLEA69940]
Housing Development Finance Corp (HDFC.BO: Quote, Profile, Research) lost 1 percent
after rising nearly 4 percent over the two previous sessions,
while Oil & Natural Gas Corp (ONGC.BO: Quote, Profile, Research) declined 0.4 percent
after gaining 6.7 percent over four sessions.
In the broader market, losers and gainers were almost equal
on relatively higher volume of 589 million shares.
The 50-share NSE index .NSEI finished 0.18 percent lower
at 5,108.85.
European shares tested one-year highs early and the
FTSEurofirst 300 index of top European shares was
trading 0.6 percent higher at 1032 GMT.
STOCKS THAT MOVED
* EIH Ltd (EIHO.BO: Quote, Profile, Research) closed 7.2 percent higher at 136.25
rupees after the Economic Times newspaper said Max India
(MAXI.BO: Quote, Profile, Research) Chairman Analjit Singh was likely to expand his stake
in the hotel chain. [ID:nBOM429699]
* Parsvnath Developers (PARV.BO: Quote, Profile, Research) rose 1.9 percent to 138.75
rupees after the realtor's net profit in the September quarter
more than doubled to 571.5 million rupees. [ID:nDEL173545]
* Drug maker Alembic (ALMC.BO: Quote, Profile, Research) fell 4.9 percent to 48.85
rupees after its July-September net profit dropped 11.6
percent. [ID:nBMB008694]
MAIN TOP 3 BY VOLUME
* Euro Multivision (EUMU.BO: Quote, Profile, Research) on 20.7 million shares
* Shree Precoated Steels (SHEP.BO: Quote, Profile, Research) on 19.4 million shares
* Suzlon Energy (SUZL.BO: Quote, Profile, Research) on 14.6 million shares.
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dollar drops on U.S rate outlook; stg gains
[FRX/]
* Oil firm after hitting one-year high near $76
[O/R]
* Buoyant earnings boost stocks, hit dollar
[MKTS/GLOB]
* U.S. stock index futures edge higher; results eyed
[.N]
* For closing rates of Indian ADRs
INADR
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