Indian shares edged higher on Monday, tracking firm Asian cues as investors cheered China's announcement of a cut in banks' reserve requirement ratio by 50 basis points, effective May 18.
Traders are also closely monitoring oil price movements after crude futures ended at a near five-month low on Friday, weighed down by a strengthening dollar and data showing an increase in crude production by the OPEC cartel.
The benchmark 30-share Sensex is currently at 16,370, up 77 points or 0.47 percent from its previous close, while the broader Nifty index is up 20 points or 0.41 percent at 4,949. Heavyweight metal, banking and auto stocks are leading the gainers, while FMCG stocks are drifting lower on profit taking after recent sharp gains. Underlying sentiment remains cautious to some extent ahead of April inflation numbers due around noon.
Larsen & Toubro is rising 1.1 percent while JSW Steel is losing over a percent ahead of their quarterly earnings announcement today. Bajaj Auto is gaining 2.1 percent and SBI is up 1.1 percent ahead of their earnings announcements later this week.
State-run oil retailers are gaining ground on the buzz that they may hike petrol prices after the end of the budget session of Parliament this month. BPCL is up 0.9 percent, HPCL is gaining 1.2 percent and IOC is adding 0.8 percent.
Bhushan Steel is posting a modest 0.3 percent gain after its board approved a proposal to raise up to $1 billion. Essar Oil is down almost 3 percent as it posted a Rs.515-crore net loss for the March quarter against a net profit of Rs. 321 crore in the corresponding period last year. Bajaj Finserv is up almost 2 percent ahead of a board meet on Wednesday to consider raising funds via a QIP issue.
Telecom stocks are trading mixed as telecoms regulator TRAI reaffirmed most of its recommendations on 2G and kept the base price of spectrum intact despite pressure from industry. Bharti Airtel is up 0.2 percent and Idea Cellular is rising 1.7 percent, but Reliance Communication is edging down 0.2 percent.
Bombay Dyeing is plunging 6.5 percent after the Bombay High Court directed the textile major to hand over 65,000 square feet of land back to the Brihanmumbai Municipal Corporation and Maharashtra Housing and Area Development Authority. Jai Balaji Industries is declining 1.3 percent on restructuring reports.
Indian shares fell for a third week in a row last week, with benchmark indexes Sensex and the Nifty falling over 3 percent each, as weak global cues on the back of eurozone concerns and data showing a contraction in India's industrial output in March and a weak rupee rattled investors.
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