MUMBAI, July 29 (Reuters) – Indian shares were trading 0.2
percent lower on Thursday ahead of the expiry of monthly
derivatives contracts and subdued cues from Asian markets.
Energy major Reliance Industries (RELI.BO) dropped 0.5
percent after sliding 3.1 percent in the previous session, and
traders said they were cautious of the near-term trend.
“A lot of short positions are being rolled over in Reliance
Industries, indicating a bearish outlook,” said Kunal Sukhani,
manager of institutional equities at Asian Markets Securities.
The stock, which has the heaviest weight on the main BSE
index .BSESN, has come under pressure following a delay in
the company’s plan to reach full gas output from its field off
India’s east coast.
The oil secretary said late on Wednesday Reliance would be
able to pump natural gas at full capacity from its deep-sea
field during the year to March 2013, indicating a delay of
almost two years. [ID:nSGE66R0KK]
By 11:09 a.m. (0539 GMT), the 30-share BSE index was
trading down 0.2 percent at 17,921.28 points, with 19 of its
components declining.
“Market is volatile because of derivatives expiry,” said
Sukhani, referring to the monthly contracts on the National
Stock Exchange.
DLF (DLF.BO) dropped 1.4 percent after the largest listed
property developer’s 3.8 percent rise in quarterly profit
failed to cheer investors. [ID:nBMA008118]
Param Desai, a research analyst with Angel Broking, said
the profit was tad below expectation as interest and
depreciation costs weighed.
Financials were mixed as near-term monetary tightening
fears weighed, but the demand for loan outlook was seen higher
on the back of robust economic growth.
A Reuters poll showed the central bank was likely to raise
rates more aggressively in the rest of the fiscal year, after
tightening policy more than expected on Tuesday.
[ID:nBMA008098]
Top lender State Bank of India (SBI.BO) dropped 1.2 percent
while rivals ICICI Bank (ICBK.BO) and HDFC Bank (HDBK.BO) were
up 0.1 percent and 0.2 percent respectively.
Foreign funds have invested $9.2 billion in Indian equities
so far this year and has helped the benchmark index gain 2.6
percent in the period.
In the broader market, gainers and losers were almost equal
in number on volume of 113 million shares.
The 50-share NSE index .NSEI was down 0.2 percent at
5,387.25.
Elsewhere, the MSCI’s measure of Asian markets other than
Japan .MIAPJ0000PUS was barely changed while Japan’s Nikkei
.N225 was down 0.7 percent.
STOCKS ON THE MOVE
* HCL Technologies (HCLT.BO) was up 2.8 percent at 383.25
rupees after the software services firm said quarterly net
income rose marginally as demand for outsourcing increased.
[ID:nSGE66R0DZ]
* Hexaware Technologies (HEXT.BO) dropped 1.5 percent to
83.40 rupees as its April-June net profit slumped 63.5 percent.
[ID:nBMB011147]
MAIN TOP THREE BY VOLUME
* Aster Silicates (ASTS.BO) on 9.5 million shares
* Karuturi Global (KART.BO) on 4.2 million shares
* Shree Ashtavinayak (SACV.BO) on 2.3 million shares
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Euro dips vs yen on Japan exporter selling
[FRX/]
* Oil steady near $77 after sharp US petroleum stocks gain
[O/R]
* Asia shares retreat from highs, dollar dips
[MKTS/GLOB]
* Wall St falls on economic outlook
[.N]
* For closing rates of Indian ADRs