Indian shares are trading modestly lower on Thursday despite a firmer rupee and positive Asian cues on speculation over further policy easing by the U.S. Federal Reserve and the European Central Bank. The rupee snapped a four-day slide, as the euro steadied and the Nationalist Congress Party declared a truce with its alliance partner Congress.
With new U.S. home sales falling by the most in more than a year in June, speculation increased that the Federal Reserve will provide monetary stimulus to boost growth and increase job hiring in the world's largest economy.
The benchmark BSE Sensex is currently down 34 points or 0.2 percent at 17,179, while the broader Nifty is at 5,098, down 11 points or 0.22 percent from its previous close.
Realty, capital goods and metal stocks are pacing the declines, while FMCG stocks are gaining ground. ITC is up 0.7 percent ahead of its quarterly results today.
Infosys is losing a percent after the mediation process between the company and Jack Palmer over harassment charges failed.
Sesa Goa is declining 1.3 percent despite receiving a respite with regard to the ban on iron ore transportation in Goa. JSW Steel is down over 2 percent and Sterlite Industries is losing 1.4 percent ahead of their quarterly results today. Raymond is tumbling 3 percent on weak Q1 earnings.
Asian Paints is moving down half a percent after the company unveiled plans to explore opportunities in areas of home improvement and decor.
Unitech is gaining 1.1 percent as the realty firm approached the Foreign Investment Promotion Board objecting to its telecom partner Uninor's Rs.1,200-crore rights issue proposal. Neyveli Lignite is up 0.3 percent on divestment reports.
Indian shares fell on Wednesday, as traders were reluctant to take long positions ahead of the expiry of July series derivative contracts slated for Thursday. Also, Asian markets ended mostly lower on concerns over Europe's debt crisis and European stocks held modest gains amid mixed earnings reports, giving little in the way of directional cues.
The BSE Sensex ended the session down 72 points or 0.43 percent at 16,846, while the broader Nifty index fell by 19 points or 0.36 percent to 5,109.
by RTT Staff Writer
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