BSE Sensex rises in choppy trade

MUMBAI Wed Nov 30, 2011 5:04pm IST

People watch a large screen displaying India's benchmark share index on the facade of the Bombay Stock Exchange (BSE) building in Mumbai January 24, 2008. REUTERS/Punit Paranjpe/Files

People watch a large screen displaying India's benchmark share index on the facade of the Bombay Stock Exchange (BSE) building in Mumbai January 24, 2008.

Credit: Reuters/Punit Paranjpe/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The BSE Sensex closed a choppy Wednesday session 0.7 percent higher, reversing early losses as second-quarter growth met forecast, with Reliance Industries (RELI.NS) leading the gains, while gloomy global economic conditions continued to weigh.

Dragged down by turmoil overseas, rampant inflation and a series of interest rate hikes by Asia's most hawkish central bank, data on Wednesday showed India's economy grew 6.9 percent in the last quarter, its slowest rate in more than two years.

Car makers and engineering and construction firms fell, as the data revealed the heavy toll global factors and home-grown problems were taking on the economy.

"GDP was bang in line with expectations and that's the main reason why the market moved up," said Dipen Shah, head of research for private client group at Kotak Securities in Mumbai.

"Given the slowing growth, there's a sense in the market that the central bank might pause in its tightening cycle."

The main 30-share index closed up 0.72 percent at 16,123.46 points, with 20 of its components gaining.

Energy major Reliance, India's most valuable firm by market capitalisation, closed up 1.7 percent at 778.25 rupees, after media reports said the oil and gas major was looking to raise $1 billion to fund its shale gas ventures in the United States.

Tata Motors (TAMO.NS), India's third-largest car maker by domestic sales, saw its shares close down 2.6 percent at 172.80 rupees. Fellow automaker Hero MotoCorp (HROM.NS) ended down 3.0 percent at 1,999.70 rupees.

Toughening domestic economic conditions have chipped away demand for vehicles, dragging automakers, while engineering and construction firms have warned of deferred projects and slowing investment spending.

Larsen & Toubro (LART.NS), the country's biggest engineering conglomerate, shed 0.4 percent to close at 1,272.15 rupees, after falling as much as 2.1 percent intra-day. Construction firm Jaiprakash Associates ended the day at 62.10 rupees, down 1.7 percent.

Banking and finance stocks rallied after the release of the GDP data, helping lift the benchmark index into positive territory.

State Bank of India (SBI.NS), the country's top lender, ended the day at 1,762.45 rupees, up 0.1 percent. The stock rose as much as 1.9 percent after the data release, gaining back lost ground.

Shares in rival ICICI Bank (ICBK.NS) closed down 2.9 percent at 712.45 rupees, its lowest level since September 2009, after the stock's weightage on the Morgan Stanley Capital International MSCI.L index was reduced to 3 percent from 5 percent.

The banking sector has been hit by slower loan growth and higher defaults by customers due to rising interest rates.

The government refused to allow a parliamentary vote on Wednesday on rolling back a plan to open up the country's $450 billion retail sector to foreign supermarkets.

The current legislative session, which has been disrupted in the past six days, now faces more of it, making it unlikely that any significant laws will be passed this year.

The 50-share NSE index .NSEI closed up 0.56 percent at 4,832.05 points.

In the broader market, declining stocks outnumbered gainers by 1.7:1 on total volume of about 782 million shares.

Shares across Asia fell on Wednesday as caution set in over the chance for more progress in resolving euro zone debt woes after officials agreed to strengthen a rescue fund and seek more aid from the International Monetary Fund.

The MSCI's broadest index of Asia Pacific shares outside Japan fell 0.34 percent and Japan's Nikkei closed down 0.51 percent.

STOCKS ON THE MOVE

* Ansal Housing & Construction Ltd (ANSL.NS) jumped 20 percent, hitting its daily limit, after the firm said late Tuesday its board would meet on Friday to consider a buyback of shares.

* Shares in Ranbaxy Laboratories (RANB.NS) fell as much as 4.95 percent, after the drugmaker did not announce a final settlement with regulators in the United States over the launch of its copy-cat version of cholesterol-lowering drug Lipitor, which loses its patent on Wednesday.

* Bharti Airtel (BRTI.NS), India's biggest mobile phone firm, rose as much as 4.1 percent, after the firm announced it had crossed 50 million customers in Africa.

MAIN TOP THREE BY VOLUME

* Idea Cellular (IDEA.NS) on 51.1 million shares

* Bharti Airtel on 47.1 million shares

* Steel Authority of India (SAIL.NS) on 33.2 million shares

(Editing by Malini Menon)

FILED UNDER:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage