MUMBAI, July 27 (Reuters) – Indian shares were trading
barely changed on Tuesday as investors were cautious ahead of
the central bank’s quarterly policy review announcement
expected at 0600 GMT.
A Reuters poll last week showed majority of economists
expect the Reserve Bank of India (RBI) to raise interest rates
by 25 basis points (bps) and tighten policy further in coming
quarters. [ID:nBMA008035]
By 10:47 a.m. (0517 GMT), the 30-share BSE index was
trading up 0.02 percent at 18,023.02 points, with two-thirds of
its components advancing.
“People are just nervous before the (central bank) policy,”
said Arun Kejriwal, director of research firm KRIS.
Kejriwal expects a 25 bps hike in key interest rates and a
hawkish stance from the central bank.
“Monsoon is improving which is good. But looking at the
recent earnings, we are seeing input cost pressures. For banks,
asset quality is getting to be a worry.”
Total rainfall since June 1, the start of the vital,
four-month monsoon season was 16 percent below normal on July
19, but the seasonal deficit narrowed to 7 percent on Monday,
data from the India Meteorological Department showed.
[ID:nSGE66P0IS]
The benchmark index is up 3.2 percent year to date.
Foreign funds have poured in $9 billion in Indian equities
so far in 2010, a portion of which was invested in primary
market.
Financials were mixed ahead of the central bank policy
announcement.
Leading lender State Bank of India (SBI.BO) rose 0.1
percent while rival ICICI Bank (ICBK.BO) dropped 1.3 percent.
Mortgage lender Housing Development Finance Corp (HDFC.BO)
was trading 0.1 percent lower.
Energy giant Reliance Industries (RELI.BO) led the gains
ahead of its quarterly earnings announcement.
Reliance Industries, which has the highest weight on the
main index, was up 0.5 percent. According to a Reuters poll,
Reliance may report a net profit of 48.3 billion rupees.
[ID:nSGE66M09E]
Top power producer NTPC (NTPC.BO) declined 0.9 percent as
it reported a 16-percent drop in its June quarter net profit,
after market hours on Monday. [ID:nBMA008082]
Top engineering and construction firm Larsen & Toubro
(LART.BO) was down 2.6 percent, as it details its June-quarter
earnings later in the day, while Hindustan Unilever HUL.BO,
which also declares its quarterly numbers, firmed 0.9 percent.
In the broader market, gainers led losers in a ratio of
1.1:1 in a volume of 82 million shares.
The 50-share NSE index was barely changed at
5,415.70 points.
STOCKS ON THE MOVE
* Software firm Tech Mahindra (TEML.BO) was down 3.4
percent at 712.50 rupees after it reported a 9.1-percent rise
in its June-quarter net profit which did not meet expectations,
dealers said. [ID:nBMA008081]
JPMorgan downgraded the stock to “neutral” from
“overweight”, while BNP Paribas cut its rating to “hold” from
“buy”.
* Mahindra Holidays (MAHH.BO) dropped 4.9 percent to 518.55
rupees, after the hospitality services provider said its June-
quarter net profit declined 61 percent.[ID:nBMB011070]
* Motorcycle maker Hero Honda (HROH.BO) bounced back 3.1
percent to 1,868.70 rupees, after it had dropped 7.5 percent in
the previous session.
MAIN TOP THREE BY VOLUME
* IFCI (IFCI.BO) on 2.8 million shares
* Shree Ashtavinayak (SACV.BO) on 1.4 million shares
* Resurgere Mines (RESU.BO) on 1.1 million shares
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Euro stalls near 2-month peak, meets resistance
[FRX/]
* Oil steady near $79; U.S. inventories seen mixed
[O/R]
* Asian stocks rise on US data, euro inches up
[MKTS/GLOB]
* Wall St gains on FedEx outlook, new home sales data
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; editing by Malini Menon)
