MUMBAI, June 17 (Reuters) – Indian shares flip-flopped on
Thursday as weak Asian markets prompted investors to pause
after the main index had rallied more than 5 percent over six
Traders said the market was facing resistance after its
longest winning streak in nine months. Although foreign fund
investments have picked up on the back of robust factory output
data, double-digit inflation was a concern.
“The pain due to Europe’s troubles seems to be priced in. A
steep downside from here doesn’t look likely right now. That
said, we are not going to rise very fast either,” said R.
Ganesh, director of Systematix Shares.
By 11:28 a.m. (0558 GMT), the 30-share BSE index .BSESN
was trading down 0.05 percent at 17,454.78 points, with 19 of
its components declining.
Reliance Industries (RELI.BO), which has the highest weight
on the Sensex, rose 1.1 percent.
The energy major may foray into the healthcare sector by
buying a 26 percent stake in hospital chain Fortis Healthcare
(FOHE.BO), the Financial Express reported. [ID:nSGE65G03T]
Fortis, which last week unveiled plans to raise as much as
$1.2 billion, is positioning itself for a possible battle with
Malaysian sovereign wealth fund Khazanah for Singapore’s
Parkway Holdings (PARM.SI). [ID:nSGE6580F0]
Shares in Fortis were up 2.4 percent at 155.95 rupees.
Top outsourcer Tata Consultancy Services (TCS.BO) dropped
0.6 percent, while rivals Infosys (INFY.BO) and Wipro (WIPR.BO)
shed 0.9 percent each.
State-run explorer Oil & Natural Gas Corp (ONGC.BO) was up
1.1 percent after the Hindustan Times reported a panel of
ministers to look into freeing of fuel prices could meet next
Foreign funds have been net buyers of Indian equities four
sessions to Tuesday, taking their investment so far in June to
nearly $588 million. In May, the funds had dumped $2 billion of
stocks in the wake of the euro zone fiscal troubles.
In the broader market, gainers led losers in a ratio of
1.3:1 on volume of 140 million shares.
The 50-share NSE index was down 0.2 percent at
STOCKS ON THE MOVE
* Non-ferrous metals maker Sterlite Industries (STRL.BO)
dropped 0.7 percent to 684.60 rupees as London copper futures
MCU3=LX fell 1.8 percent.
* Cairn India (CAIL.BO) shed 0.6 percent to 306.60 rupees,
as crude oil prices declined towards $77 per barrel.
MAIN TOP 3 BY VOLUME
* Reliance Natural Resources (RENR.BO) on 4.7 million
* MTNL (MTNL.BO) on nearly 3 million shares
* Tata Teleservices (Maharashtra) (TTML.BO) on 1.9 million
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
* Indian bond report
* Euro slips after chart failure, caution over Spain
* Oil falls towards $77 on mixed econ, stockpile data
* Euro eases as stock rally runs out of steam
* Wall St ends flat on mixed economic data, FedEx drags
* For closing rates of Indian ADRs
(Reporting by Ami Shah; Editing by Ranjit Gangadharan)