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Indian Markets Shrug Off Weak Asian Cues

Indian shares are trading modestly higher on Monday, shrugging off weak Asian cues. Consumer durable, banking and capital goods stocks are leading the gainers, while IT and realty stocks are subdued.

Other Asian markets are trading mostly lower, with key benchmark indexes in Australia, China, Hong Kong, Japan and South Korea declining between 0.2 percent and 0.6 percent, as companies from Daewoo Engineering & Construction Co. and Tokyo Steel posted disappointing earnings and data showed Chinese manufacturing remained in contraction in April. On the positive side, the IMF secured $430 billion in new money to deal with economic spillovers from Europe's debt crisis.

U.S. stocks turned in a mixed performance on Friday, as profit taking after recent gains wiped out gains following positive quarterly results from companies such as Microsoft, General Electric and McDonald's. The Nasdaq ended down 0.2 percent, while the Dow rose half a percent and the S&P 500 edged up 0.1 percent.

Closer home, the benchmark 30-share Sensex is currently trading near the day's high at 17,436, up 62 points or 0.36 percent from its previous close, while the broader Nifty index is up 19 points or 0.36 percent at 5,310.

The BSE mid-cap and small-cap indexes are moving up 0.6 percent and 0.8 percent, respectively and the market breadth is extremely positive, with about 3 shares gaining ground for every share that declined on the BSE.

Shares of market heavyweight Reliance Industries are rising half a percent as the energy giant reported its second consecutive quarterly drop in profit, with higher than expected gross refining margin. Cairn India is also gaining half a percent after the Vedanta group-promoted firm reported an 11 percent drop in quarterly profit.

Software services exporter Infosys is losing 1.3 percent on reports that the U.S. Department of Homeland Security has found errors in employer eligibility documents of its staff working in the United States.

Property developer DLF is declining 1.1 percent on news that Dr Reddy's Laboratories will replace the company in the BSE Sensex from June 11. Shares of Dr Reddy's Laboratories are rising 0.3 percent.

by RTT Staff Writer

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