Indian shares pared early losses on Monday, as European shares edged higher and the euro rebounded from the lowest level since September 2010 before European leaders meet in Berlin to discuss rescue plans for the region. Cues from the rest of Asia were subdued, dampening investor sentiment to some extent.
The benchmark 30-share Sensex ended down 34 points or 0.22 percent at 15,815 after falling to a low of 15,678 early in the session. Likewise, the 50-share Nifty index recouped most of its early losses to end little changed at 4,743. Second-line stocks outperformed, with the BSE mid-cap and small-cap indexes rising 0.64 percent and 1.4 percent, respectively.
Banking, FMCG and oil/gas stocks posted modest losses, while shares of state-run companies, realty, consumer durable, capital goods and power stocks saw good buying interest.
Coal India lost 1.6 percent after the Calcutta High Court reportedly asked the state-run miner to consider maintaining status quo on the new pricing regime in West Bengal till January 16. Telecom major Bharti Airtel fell almost 3 percent as the face-off between private telecom operators and the government over the contentious 3G roaming pacts continues.
Two-wheeler maker Hero MotoCorp eased 0.1 percent, Bajaj Auto fell 1.5 percent and TVS Motor shed 1.2 percent on signs of increasing competition after global two-wheeler manufacturers unveiled new models and variants of existing bikes at the New Delhi Auto Expo 2012.
JK Lakshmi Cement fell 1.2 percent after the company said it will expand capacity to 10 million tonne by the end of next year. Other cement stocks such as ACC and Ambuja Cement also ended in the red, weighed down by concerns like price cuts and coal price hikes.
IT major Infosys slipped marginally and rival Wipro declined a percent after a brokerage report said IT companies are implementing marginal cuts in employees' variable pay to tide over economic uncertainties around the world.
Tata Power rose 1.7 percent after the company commissioned a unit of its 4000 MW power station at Mundra in Gujarat on Sunday. Reliance Power advanced 1.8 percent after the Economic Times said state-run Northern Coalfields has agreed to surrender land required to mine two blocks attached to the Sasan ultra mega power plant to the Anil Ambani-controlled company.
Jaiprakash Associates rose 2.4 percent after founders of the diversified firm said they would challenge on order by market regulator SEBI penalizing them on insider trading charges. Jet Airways gained 1.8 percent after the Business Standard reported that the airline will merge its no-frills brands JetLite and Jet Konnect.
Large cap pharma shares such as Sun Pharma and Cipla rose 1-3 percent. Strides Arcolab eased 0.2 percent after the Times of India said the drug maker is considering the sale of its Australian branded generics unit Ascent Pharmahealth.
Pratibha Industries jumped 4.9 percent after the infrastructure firm said it has bagged orders worth Rs 772 crore in the building and water management segments. Sugar stocks rallied on reports the government may soon allow more sugar exports. Balrampur Chini rose 3 percent, while Shree Renuka and Triveni Engineering & Industries soared over 7 percent each.
On the global front, most Asian stocks fell on Monday as renewed concerns over the outlook for Europe overshadowed data showing a surprising pick-up in U.S. jobs growth. Also, the corporate earnings season will unofficially start for U.S. corporations today with a report from aluminum giant Aloca due after the closing bell.
China's Shanghai Composite index bucked the downtrend to end 2.9 percent higher on signs the government is taking steps to ease a cash crunch after data showed China's December lending and money supply growth exceeded economists' estimates. Hong Kong's Hang Seng index also gained 1.5 percent, reversing early losses after Chinese Premier Wen Jiabao on Saturday called for measures to boost market confidence.
European stocks were modestly higher in early trading Monday, as cautious optimism ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Berlin later in the global day lifted bank shares.
The meeting precedes another round of talks among leaders of France, Germany and Italy in Rome on January 20 to discuss the eurozone debt crisis threatening the very existence of the 17-member single currency bloc.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.