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Indian Shares Fall On Global Cues

Indian shares fell on Wednesday, mirroring negative sentiment on Wall Street overnight and across the rest of Asia this morning, as investors continue to fret about concerns in peripheral European countries and weakening economic activity in the world's two largest economies. Uncertainty ahead of IIP numbers due out tomorrow and Infosys' results slated to be announced on Friday also prompted traders to adopt a cautious stance.

The benchmark 30-share Sensex is currently at 17,122, down 121 points or 0.7 percent from its previous close, while the broader Nifty index is down 37 points or 0.71 percent at 5,206.

Bharti Airtel is losing 1.3 percent on reports that it is in advanced talks to buy 4G licenses from U.S. chipmaker Qualcomm for about Rs 6000 crore. Reliance Communication is down 1.6 percent as the telecom major unveiled plans to launch an initial public offering for its undersea cable unit Flag Telecom on the Singapore Stock Exchange.

Idea Cellular is declining marginally while Tata Teleservices is up 1.2 percent after reports said that the Union Cabinet has approved telecoms department's plan to make a presidential reference seeking clarifications on the Supreme Court's February 2 judgment canceling 122 licenses allocated to nine companies in January 2008.

Maruti Suzuki is subdued and Tata Motors is little changed after industry body SIAM said it expects car sales to grow at around 10-12 percent in the ongoing fiscal.

Metal stocks are extending recent declines as investors fret about slowing global growth. JSW Steel, SAIL, Tata Steel, Jindal Steel, Sterlite and Sesa Goa are among the prominent decliners, with losses 1-3 percent.

Elecon Engineering is down marginally despite winning new orders worth Rs.22.59 crore from various clients for supply of material handling equipments and spares.

TV Today Network is climbing 4 percent as the company denied stake sale reports. Ind-Swift Laboratories is up 0.9 percent after the drug firm said it has received the U.S. FDA approval to sell five active pharmaceutical ingredients in the American market.

Airline stocks are rising on reports the government is close to allowing foreign airlines to pick up stakes in domestic carriers. Kingfisher is climbing 6.4 percent, Jet Airways is rallying 4.7 percent and SpiceJet is moving up 3.8 percent.

Indraprastha Gas is gaining 2.6 percent after the company moved the Delhi High Court against the petroleum and natural gas regulatory board's order to cut tariff for CNG and LPG by around 60 percent in New Delhi as well as NCR. Gujarat Gas is up 0.9 percent and Petronet LNG is adding half a percent.

State-run oil retailers such as BPCL, HPCL and IOC are gaining about half a percent each, as international crude prices fell to a near 8-week low on worries about weakening fuel demand from China. Also, the American Petroleum Institute said late Tuesday that U.S. crude inventories rose 6.6 million barrels last week, much more than the 2.1-million-barrel build analysts had expected.

by RTTNews Staff Writer

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