Indian shares are moving sideways in early trading on Monday, as investors exercised caution ahead of industrial output and inflation data due on Wednesday and Friday, respectively, before RBI's rate-setting meeting scheduled for next week. Asian markets are turning in a mixed performance, further weighing on markets.
Paring early gains, the benchmark BSE Sensex is currently up about 8 points or 0.05 percent at 17,758, while the broader Nifty index is up 0.02 percent. Second-line stocks are posting modest gains and the market breadth is fairly positive, with gainers outpacing declining ones by 1219 to 794 shares on the BSE.
Metal stocks like Hindalco and Coal India are up about a percent each as weak U.S. jobs data spurred hopes of more policy stimulus. Tata Steel is up a percent as Citi upgraded the stock to "buy" from "neutral".
Cipla is adding a percent after winning a patent case against Swiss drug maker F Hoffmann-La Roche. ONGC is posing a modest 0.3 percent gain after its overseas arm signed a definitive agreement to acquire US energy company Hess Corp's participating interest in Azeri, Chirag and Guneshli group of oil fields for $1 billion.
Infosys is gaining 0.4 percent after it agreed to buy Zurich-based global management consultancy firm Lodestone in an all-cash deal. Bharti Airtel is moving up 1.2 percent amid reports that its tower arm, Bharti Infratel, will file a draft prospectus with market regulator SEBI this week to raise Rs.5,000 crore via an initial public offering.
Godrej Industries is little changed after it entered into a share purchase agreement to divest its entire 43 per cent stake in a "sick" joint venture. Indiabulls Financial Services is edging down modestly on receiving shareholder nod for a scheme of arrangement between the company and Indiabulls Housing Finance.
Shares of KSK Energy Ventures are losing 2.7 percent. The company clarified that the allotment of Naini block to Puducherry corporation-PIPDIC is not a private allotment as indicated by the Comptroller and Auditor General.
Bosch shares are down nearly 2 percent. The auto component maker said it will suspend production at its Jaipur and Bangalore plants on specific days in September with an aim to avoid the unnecessary build-up of inventory.
Mahindra Urgine Steel Company is tumbling over 3 percent after finalizing a 51:49 joint venture with Japanese firms Sanyo Special Steel Co. and Mitsui & Co. Deccan Chronicle is down 0.4 percent on reports that it is seeking debt recast of Rs 3000 crore. ITI is tumbling almost 5 percent on profit taking after a 10 percent rally on Saturday on a Rs 4156-cr revival plan.
Indian shares rose to a two-week high in a special trading session on Saturday, with the broader Nifty index closing above the 5,350 level for the first time in the last 10 sessions. Both the Sensex and the Nifty indexes rose about 2 percent each last week, boosted by a bond buying plan unveiled by the European Central Bank.
by RTT Staff Writer
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