Indian shares are moving sideways in early trading on Tuesday, with gains capped ahead of a key European summit later this week. U.S. markets fell sharply overnight on concerns about the euro-zone debt crisis and Asian markets are following suit, dampening investor sentiment a little bit. Meanwhile, reports suggest that Prime Minister Manmohan Singh will take charge of the finance ministry after Pranab Mukherjee's resignation.
The benchmark BSE Sensex and the broader Nifty indexes are trading flat, while the BSE mid-cap and small-cap indexes are rising about 0.2 percent each. Realty, oil/gas and healthcare stocks are leading the gainers, while FMCG, metal, consumer durable and IT stocks are subdued.
Tata Power, ONGC, TCS, Dr Reddy's Laboratories and Gail India are among the prominent gainers in the Sensex pack, with gains 1-2 percent.
Jaiprakash Associates is gaining 0.2 percent after the Aditya Birla Group reportedly emerged as the front-runner in a bid to acquire a stake in its cement business. SpiceJet is moving up 0.6 percent on stake sale reports. C& C Constructions is climbing 4.3 percent on bagging an order worth Rs.151 crore from IRCON International.
Aluminum major Hindalco Industries is down 0.3 percent ahead of a board meet tomorrow to consider its audited FY12 results. Essar Oil is losing 3 percent after the Gujarat High Court rejected its plea for relief in repayment of over Rs 8000 crore sales tax deferment liability.
Indian shares fell modestly on Monday, erasing early gains as the Reserve Bank of India's measures to prop up capital inflows failed to meet heightened expectations. The benchmark BSE Sensex rose about 160 points early in the session before reversing direction and ending down about 90 points or half a percent at 16,882, while the broader Nifty index fell by 31 points or 0.61 percent to 5,114.
by RTT Staff Writer
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