Indian shares slip 0.1 pct; results, monsoon watched ? ~ MAKE MONEY BLOG$

7/6/11

Indian shares slip 0.1 pct; results, monsoon watched ?

7:21 AM

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By Nandita Bose
Make Money Blog$; (Reuters) - Indian shares fell for the second

consecutive session and ended down 0.1 percent in choppy trade
on Wednesday, taking cues from global markets and as investors
held back from taking major positions ahead of upcoming
quarterly results.

 Financials led the losses, with lenders State Bank of India
 and ICICI Bank falling 1.2 and 2 
 percent, respectively. The outlook for the sector has been
cloudy on worries over hardening interest rates impacting
growth.

 "The cues from the global markets have not been very
positive today... The market has been consolidating in a narrow
band in the past three-four sessions and is clearly looking for
fresh triggers from the quarterly results and the monsoon to go
up," said Neeraj Dewan, director Quantum Securities.

 Global shares edged lower on Wednesday as investors remained
wary of a slowdown in the global economy, while Moody's
downgrade of Portugal's credit rating to "junk" status escalated
fears on the euro zone debt crisis.

 The 30-share BSE Sensex closed down 0.09 percent at
18,726.97 points, with 18 of its components losing. It rose as
much as 0.42 percent in the day.

 Foreign funds have pumped in nearly $2 billion in the eight
sessions to July 4, as they ramped up their interest in riskier
emerging market assets, helping the main index rack up gains.

 The main index has recovered 8 percent since a June 20 low
of 17,314 points, but is still down nearly 9 percent so far in
2011.

 "Going forward the market looks positive and the rally
should continue unless there is some major disappointment from
the domestic results front or even the monsoon," said Dewan.

 The 50-share NSE index ended down 0.12 percent at
5,625.45 points. In the broader market, 718 losers were ahead of
701 gainers on a volume of more than 529 million shares.

 Idea Cellular ended up 1.95 percent a day after it
said a tribunal stayed the country's telecoms ministry from
enforcing fines worth 2.5 billion rupees ($56.3 million) over
alleged violation of telecoms rules in its takeover of a smaller
rival.

 Software firms, which get a majority of their revenues from 
the United States and Europe, had traded weaker as investors
turned cautious ahead of the U.S. payrolls report due on Friday
and after Moody's downgrade of Portugal.

 Infosys edged down 0.09 percent and Wipro
 ended 0.74 percent lower, while Tata Consultancy
 reversed early losses to end 0.28 percent higher.

 Shares of India's No. 2 steelmaker by capacity JSW Steel
 closed 1.6 percent higher at 889.25 rupees after it
said its crude steel production grew by 9 percent in the June
quarter.

 The MSCI world equity index was down 0.3
percent at 10:43 GMT, while the Thomson Reuters global stock
index dropped 0.21 percent.

 STOCKS ON THE MOVE

 * Shares in tyre manufacturer Goodyear India rose
over 6.5 percent on market talk the company is in advanced
stages of delisting at 525 rupees per share, several traders
said. The stock ended up 2.7 percent.

 * Shares of drugmaker Cadila Healthcare ended 1.66
percent lower after it received a warning letter the from U.S.
Food and Drug Administration following a pre-approval inspection
of its new injectables facility in the western state of Gujarat.

source: http://in.reuters.com/
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