Indian shares edged lower on Tuesday, albeit posting modest losses, as the initial euphoria over a bailout for Spain's banks gave way to caution ahead of fresh Greek elections on June 17.
U.S. stocks retreated after a short rally overnight and Asian markets are following suit, dampening investor sentiment as they look forward to industrial output data due around noon.
Extending losses for the second straight session, the benchmark 30-share Sensex is currently down 63 points or 0.38 percent at 16,605, while the broader Nifty index is down 18 points or 0.35 percent at 5,036.
Elsewhere, Hong Kong's Hang Seng index is down 0.6 percent, China's Shanghai Composite index is retreating 0.8 percent, Japan's Nikkei average is moving down 0.7 percent and South Korea's Kospi average is losing half a percent.
Wipro, Dr Reddy's Laboratories, ITC, Jindal Steel and SBI are among the prominent decliners in the Sensex pack, with losses 1-2 percent.
Suzlon Energy is down almost 2 percent on reports that it is mulling selling some of its non-core assets. Telecom stocks are trading mixed amid reports that the panel of ministers on spectrum headed by Pranab Mukherjee is unlikely to revise the high base prices for the auction of 2G spectrum. Bharti Airtel is edging down 0.1 percent, while Idea Cellular and Reliance Communication are gaining about half a percent each.
Infosys is up 0.1 percent after Africa's Standard Bank chose its Finacle digital commerce solution to drive agency banking and increase financial service efficiency. DLF is moving up 0.2 percent after reportedly selling its hotel arm for Rs.567 crore.
CMC is adding 1.2 percent after Forth Ports, owner of the Port of Tilbury, announced the appointment of the Indian company as its IT partner for the newly-acquired London Container Terminal.
State-run oil retailers like BPCL, HPCL and IOC are gaining between half a percent and one percent, as Brent crude extended losses to edge below $97 a barrel in Asian trading Tuesday on economic concerns. Meanwhile, speculation is rife that petrol price may by cut by Rs.2 a litre later this week.
India's benchmark indexes Sensex and the broader Nifty eased about 0.3 percent each on Monday after Standard & Poor's warned that India could become the first of the so-called BRIC countries to lose its investment-grade rating because of slow economic growth and political roadblocks to economic policy making.
by RTT Staff Writer
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