Indian shares ended a choppy session little changed on Friday, as consumer durable, auto and banking stocks turned weak, offsetting gains in the IT and FMCG sectors. The rupee traded weak, tracking the ailing euro, and global cues remained lackluster in the wake of dismal Chinese trade data, further weighing on markets.
The benchmark 30-share Sensex moved both sides in a 120-point range before ending down 3 points or 0.02 percent at 17,558, with 17 of its components retreating. The broader Nifty index also fell by 3 points or 0.05 percent to 5,320.
State Bank of India tumbled 4.3 percent on asset quality concerns after its gross NPAs rose to 4.99 percent versus 4.4 percent QoQ. The state-run lender reported a 137 percent surge in quarterly net profit, meeting estimates, though bad loans continue to rise. Private-sector rival HDFC Bank slid half a percent, while ICICI Bank edged up 0.2 percent.
Tata Motor, India's largest automaker, tumbled 3.1 percent on earnings disappointment, while Mahindra & Mahindra, Bajaj Auto and Hero MotoCorp fell between 0.7 percent and 2.3 percent.
Among the prominent gainers in the Sensex pack, Hindustan Unilever, Sterlite, Maruti Suzuki, TCS, Infosys, NTPC and Wipro rose 1-2 percent.
HCL Infosystems soared 5.3 percent after it bagged a services deal from the Unique Identification Authority of India (UIDAI) for implementing and managing the Central ID Repository. Apollo Hospitals Enterprises gained 0.3 percent as the healthcare major reported a 36 percent rise in quarterly net profit.
Tech Mahindra hit a 52-week high to end 5 percent higher after it posted a 22 percent rise in quarterly profit on a consolidated basis, beating estimates.
Central Bank of India edged down half a percent on reports it will seek Rs.700-crore capital infusion from the government this year. Essar Oil eased 0.4 percent after the company obtained lenders' approval for exit of corporate debt restructuring loan facility set up in December 2004.
GMR Infrastructure fell 3.4 percent after it reported a consolidated net loss of Rs 94 crore for the quarter ended June. Ranbaxy Laboratories tumbled 3.7 percent after the drug maker posted first-quarter net loss of Rs.584 crore compared to a Rs.245 crore net profit during the corresponding period a year ago.
On the global front, other Asian markets turned in a mixed performance and European stocks were in the red, as weak Chinese trade data heightened economic concerns. With exports rising just 1 percent year-over-year against an expected 8 percent growth, Chinese trade surplus narrowed sharply to $25.1 billion in July compared to a forecast $35.2 billion, increasing worries that the world's second-largest economy may suffer a hard landing.
Separate data released today by the People's Bank of China revealed that new yuan loans issued by Chinese financial institutions totaled 540 billion yuan in July versus expectations of 690 billion yuan. Investors are anticipating policy action out of China as soon as this weekend.
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