Indian shares are moving sideways in early trading on Thursday, tracking lackluster Asian cues as investors digest a string of mixed U.S. economic data and earnings reports. Underlying sentiment remains slightly positive after Chinese Premier Wen Jiabao said easing inflation allows more room to adjust monetary policy.
The benchmark 30-share Sensex is currently down 30 points or 0.17 percent at 17,698, while the broader Nifty index is down 4 points or 0.08 percent at 5,376.
Second-line stocks are posting modest gains and the market breadth remains fairly positive, with gaining shares outpacing declining ones by 1065 shares to 876 shares on the BSE. Metal, FMCG and IT stocks are subdued, while auto, capital goods and realty stocks are gaining ground.
Bharti Airtel is little changed and GAIL is losing a percent on turning ex-dividend. Hindalco is losing a percent after its U.S. unit Novelis Inc posted lower quarterly revenue.
Hindustan Copper is rising 1.4 percent despite reporting disappointing earnings results, while Jain Irrigation is tumbling almost 6 percent. Amara Raja Batteries is up a whopping 8 percent, extending Tuesday's 16 percent rally on solid Q1 results.
MMTC is climbing 3.6 percent on reporting an 86 percent jump in first-quarter net profit. ICICI Bank is moving up half a percent after its overseas branch raised S750 million via an international bond offering.
Jupiter Info shares are trading at Rs.21.25 on debut, up over 5 percent compared to its initial public offering price of Rs.20 a share.
Unitech is edging up 0.2 percent despite reporting a 53 percent fall in first-quarter consolidated net profit. L&T Construction is gaining 0.6 percent after it reportedly bagged a contract from Lodha Developers to construct a Rs.10,000 crore residential project over the next 5 to 7 years.
Indian shares rose modestly on Tuesday after government data showed the headline inflation reached a 32-month low in July, although doubts persist over whether the RBI will cut rates at its September meeting.
The benchmark BSE Sensex ended the session up 95 points or 0.54 percent at 17,728, while the broader Nifty index rose by 32 points or 0.61 percent to 5,380. The markets were closed on Wednesday for the Independence Day holiday.
by RTT Staff Writer
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