Indian shares snapped two days of gains on Thursday, with shares of state-run oil companies leading the rebound after the government announced a steep hike in petrol prices. Underlying sentiment, however, remains cautious as the rupee continued its slide today on global risk aversion. Also, Asian markets are trading mostly lower after data showed China's manufacturing contracted for a seventh straight month in May.
Trading near its day's highs, the benchmark BSE Sensex is currently up 48 points or 0.31 percent at 15,996, while the broader Nifty index is at 4,847, up 11 points or 0.23 percent from its previous close.
Oil retailers BPCL, HPCL and IOC are rising 1-2 percent following the hike in petrol price by Rs.7.50 per litre from Thursday midnight.
Gail, Oil India and ONGC are also gaining 2-3 percent as their subsidy sharing burden on under-recoveries reduced due to the steep petrol price hike. Reports say that an Empowered Group of Ministers will meet tomorrow to discuss a possible hike in diesel and LPG prices too.
Tech Mahindra is climbing 3.8 percent as the IT company reported a 3 percent increase in its revenues for the fiscal year ended March, beating street estimates. Jyothy Laboratories is adding 1.2 percent after the maker of Ujala fabric whitener named industry veteran S Raghunandan as its CEO and whole time director.
Car maker Maruti Suzuki is losing 2.2 percent and two-wheeler manufacturers like Hero MotoCorp and Bajaj Auto are moving down 1-2 percent on worries that the latest fuel price hike will curb demand.
Metal shares are also coming under selling pressure, with Hindalco, Tata Steel and SAIL retreating between 0.5 percent and 1.2 percent after a private survey indicated China's manufacturing activity contracted at a faster pace in May.
NMDC is tumbling 2.7 percent after signing a contract for Steel Melting Shop Package with a consortium led by Siemens VAI, Austria.
Indian shares fell on Wednesday, extending the previous session's sharp sell-off, as the rupee continued its downward spiral, breaching the 56 mark against the dollar amid a weaker euro and persisting domestic concerns over slowing economic growth and a widening fiscal deficit.
Extremely weak global cues also dented investor sentiment after Greek Prime Minister Lucas Papademos said the risk of Greece leaving the euro is a "real" threat. The benchmark BSE Sensex ended the session down 78 points or 0.49 percent at 15,948, while the broader Nifty index fell by 25 points or 0.51 percent to 4,836.
by RTT Staff Writer
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