Indian shares eased for a second consecutive session on Thursday, after Trinamool Congress Chief Mamata Banerjee decided to withdraw support to the government, reducing ruling UPA-II to minority. Having said that, Finance Minister P Chidambaram yesterday ruled out rolling back decisions on fuel price hikes and FDI retail, saying the government tried to reach out to TMC on a number of occasions and that she had not taken any of the messages.
On the global front, Asian stocks are broadly lower on growth worries after data showed Japan's exports fell for a third month, while China's manufacturing activity contracted for the 11th straight month in September, although the pace of slowdown stabilized.
Realty, capital goods, metal, power and banking stocks are pacing the decliners, while IT and FMCG stocks are gaining ground. Trading off its day's low, the benchmark BSE Sensex is currently down 83 points or 0.45 percent at 18,413 and the broader Nifty index is down 33 points or 0.59 percent at 5,567.
State Bank of India is down 1.7 percent after reducing its base rate by 25 basis points to 9.75 percent per annum. Rival ICICI Bank is moving down 1.3 percent and HDFC Bank is edging down 0.2 percent. Axis Bank is losing 2.1 percent after Schroder Singapore Holding bought a 25 percent stake in its subsidiary, Axis Asset Management Company.
Deccan Chronicle is locked at the 5 percent lower circuit limit on reports that private sector banks are not keen on a debt rejig of the company. Suzlon Energy is tumbling 4.3 percent after the wind turbine maker said it plans to meet with bondholders on October 10 to seek approval to extend the maturity of its convertible bonds due next month. Tata Coffee is down 0.6 percent on turning ex-dividend.
HCL Technologies is gaining 2.4 percent as it entered into a landmark multi-million dollar deal with Freescale Semiconductor, a global leader in embedded processing solutions. Rival TCS is adding 1.7 percent and Wipro is moving up 1.4 percent, but Infosys is declining 0.3 percent. Mahindra Satyam is rising 1.3 percent after announcing the launch of its business insights solution REIMS.
State-run oil retailers BPCL and HPCL are gaining about 2 percent each after Brent crude futures fell more than $4 a barrel on Wednesday, falling for a third straight day, on talk of increased Saudi Arabian supplies and data showing a massive surge in U.S. inventories last week.
EID Parry is adding 2.2 percent ahead of a shareholder meet on October 11 to consider a demerger plan. Jet Airways is also moving up 2.2 percent on stake sale reports.
Indian shares eased slightly on Tuesday, as caution crept in amid extremely weak global cues. The benchmark BSE Sensex ended the session down 46 points or 0.25 percent at 18,496, while the broader Nifty index fell by 10 points or 0.18 percent to 5,600.
by RTT Staff Writer
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