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Indian Shares Subdued Before Inflation Data

12/13/2012 11:56 PM ET

Indian shares are moving sideways in early trading on Friday as investors await November inflation data for clues to the upcoming monetary policy meeting on 18th. Wholesale prices are expected to increase 7.6 percent in the month from a year earlier, up from 7.45 percent in October. Other Asian markets are trading mostly higher despite mixed data from Japan and China. China's Shanghai Composite index is climbing 2.9 percent after data showed growth in the nation's manufacturing sector picked up in December.

The benchmark BSE Sensex is currently down 24 points or 0.13 percent at 19,205, while the broader Nifty index is at 5,840, down 11 points or 0.19 percent from its previous close. FMCG, consumer durable and power stocks are declining, while capital goods, IT, realty and healthcare stocks are seeing stock-specific buying, helping limit the downside.

Among the prominent decliners in the Nifty pack, BHEL, Ambuja Cement, Hero MotoCorp, PNB, ONGC, Bank of Baroda, ITC, Bharti Airtel and Power Grid Corporation of India are down over a percent each.

Honeywell Automation India is losing 1.4 percent after its promoter Honeywell Asia Pacific decided to offload about 6 percent of its holding in the company at a floor price of Rs 2150 per share through a sale share today on the separate window provided by the stock exchanges.

Infosys is little changed with a positive bias after OSG Corporation of Japan selected Infosys' CommerceEdge to transform its legacy e-Commerce platform. Supreme Petrochem is tumbling 5.6 percent after denying takeover rumors.

Fertilizer shares are gaining ground after the Cabinet cleared a urea investment policy to incentivize fertilizer companies setting up new plants and expanding existing capacity. Coromandel International is moving up 0.7 percent, Deepak Fertilizer is gaining 1.2 percent and Chambal Fertilizer is up 1.8 percent.

GMR Infrastructure is adding half a percent amid reports that the government is reviewing its earlier decision to abolish airport development fees at the Delhi airport. Instead, the government now plans to reduce the fee at the airport to Rs 100 from Rs 200 currently, the Economic Times reported.

Wheels India is up a whopping 15 percent after Titan Europe Plc and Titan International announced an open offer for acquisition of 14.19 lakh shares of the company.

Telecom stocks are moving up after Prime Minister Manmohan Singh said that the troubles facing telecom sector are nearing a solution and the new policy being brought in would provide impetus to growth. Rcom is gaining 0.9 percent, Idea Cellular is edging up marginally and Tata Teleservices is adding half a percent, while shares of Bharti Airtel are declining 1.6 percent.

Indian shares fell notably on Thursday as investors awaited monthly inflation data and the passing of the much awaited Banking Laws Amendment Bill for further directional cues. The BSE Sensex fell 0.65 percent to end lower for the fifth straight day, while the broader Nifty index lost 0.62 percent.

by RTT Staff Writer

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