Indian shares rose on Tuesday on optimism that the recent reform drive will continue after the government approved a bailout package to revive state electricity boards. With the rupee stabilizing and commodities weakening despite recent stimulus efforts by central banks from both sides of the Atlantic, many analysts now expect the Reserve Bank of India to cut policy rates when it reviews monetary policy on October 30.
Paring early gains, the benchmark Sensex and the broader Nifty index are currently up about 0.1 percent each. Asian markets are turning in a mixed performance, as weakening German business confidence and a cut in Caterpillar Inc's earnings forecast reinforced worries about the global economy.
Mortgage lender HDFC is up 1.7 percent, LIC Housing Finance is moving up 1.1 percent and Dewan Housing Finance is gaining 1.7 percent after sector regulator National Housing Bank cut its prime lending rate by 50 basis points to 10 percent from 10.5 percent.
Power stocks such as NTPC Adani Power, Indiabulls Power, JSW Energy are up about 2 percent each after the government approved Rs 2 lakh crore debt recast for state power distributors. MindTree is gaining 1.3 percent after the IT services provider opened its first delivery center outside of India as part of its strategy to expand its presence in the United States.
Godrej Consumer Products is gaining 0.7 percent as it entered into an agreement for exclusive rights to include the hair extensions business in Kenya and exports to other East Africa geographies in its partnership with the Darling Group.
State-run oil explorer ONGC, IOC and Oil India are trading narrowly mixed after they submitted a joint non-binding bid of about $5 billion for buying stake in six oil sands assets in Canadian province Alberta owned by U.S. major ConocoPhillips.
Maruti Suzuki India is down 0.6 percent on reports that it will hike car prices within a week. SBI is edging down 0.2 percent on speculation the state-owned lender may cut lending rates further in some segments such as education loans. Cairn India is tumbling 3.1 percent following a block deal on the NSE.
Sugar stocks are losing ground after the Union Cabinet deferred a decision on raising price of sugar sold through public distribution system. Bajaj Hindusthan is tumbling 5.3 percent, Dhampur Sugar is losing 4 percent and Shree Renuka Sugars is down 6 percent.
Indian shares fell modestly on Monday, as investors took some profits off the table following recent steep gains. Weak global cues on concerns about Chinese growth and lingering worries about Europe's debt crisis also resulted in a lackluster trading following Friday's strong rally. The benchmark 30-share Sensex ended the session down about 80 points or 0.42 percent at 18,673, while the broader Nifty index fell by 22 points or 0.38 percent to 5,670.
by RTT Staff Writer
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