Indian shares end up; auto makers gain, Reliance recovers

Thu Nov 1, 2012 5:07pm IST

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* BSE ends up 0.3 pct; NSE adds 0.45 pct
    * HSBC's India manufacturing PMI rose slightly in October
    * Reliance reverses losses after company buys back shares

    By Manoj Dharra
    MUMBAI, Nov 1 (Reuters) - Indian shares provisionally ended
higher for a second session on Thursday, led by gains in auto
shares on higher-than-expected October vehicle sales, while
technology firm Wipro Ltd rose after saying it will
separate its non-IT units to focus on outsourcing.
    Reliance Industries Ltd recovered from a steep
fall to end up 0.2 percent after a heavy share buy-back by the
company. It fell as much as 2.1 percent after an anti-corruption
activist accused the energy conglomerate of hoarding natural gas
and exerting pressure on the government to favour it.
 
    Shares also found support from an index of manufacturing
activity. HSBC's India manufacturing purchasing managers' index
(PMI) nudged up in October to 52.9 from September's 10-month low
of 52.8, implying the sector was showing signs of stabilisation,
with a pickup in orders. 
    "The earnings season has been mixed till now and no clear
trend has emerged," said Kaushik Dani, a fund manager at
Peerless Mutual Fund. "So, for now, the market will take cues
from global developments."
    India's BSE index rose 0.3 percent or 56.32 points
to end at 18,561.70 points, 
    The 50-share NSE index rose 0.45 percent or 25.35
points to 5,645.05.
    Markets will closely await the outcome of the U.S. October
ADP national employment index, due at 1215 GMT (05:45 p.m. local
time) and U.S. weekly initial jobless claims, for the week ended
Oct. 27, due at 1230 GMT (6 p.m. local time).    
    Wipro Ltd, India's No.3 software services
provider, said on Thursday it will fold all its non-IT
businesses into a new company and focus exclusively on
information technology. 
    Wipro shares ended up 3 percent, after the
company's Chief Financial Officer Suresh Senapaty said profit
margins are expected to improve after the demerger.
 
    Shares in Titan Industries surged 10 percent, a
day after posting better-than-expected operating profit margins
for the July-September quarter, although its net profit was in
line with estimates. 
    ICICI Securities said it expects Titan to post improved
earnings in the second half of the fiscal year.
    Telecom operator Bharti Airtel's shares ended up
4.26 p ercent on hopes of a price increase and lower competition
due to higher spectrum prices, said traders.
    Utility vehicle maker Mahindra & Mahindra gained
1.74 percent after reporting a rise in sales of 29 percent in
October. 
    Tata Motors shares closed up 5 percent after
reporting lower-than-expected 6 percent rise in vehicle sales,
excluding JLR sales, in October.  
    Godrej Properties rose 3.8 percent, largely driven
by a significantly higher EBITDA growth. The company's net
profit in the September quarter surged up 67.51 percent at 325.8
million rupees, higher than what the market expected.
[ID : nWNBS3379]
    Among shares that fell were ITC Ltd, which dropped
1.15 percent, while Hindustan Unilever Ltd declined
1.67 percent, on concerns the government might implement
standard packaging regulation  for consumer products that may
impact margins, dealers said.
          
   FACTORS TO WATCH                                             
* Yen weakens towards four-month lows versus dollar       
* Oil dips on expectations of weak demand post Sandy       
* Earnings lift European shares, euro edges lower    
* Foreign institutional investor flows          
* For closing rates of Indian ADRs                       
                         
   ASIA-PACIFIC STOCK MARKETS:                                  
Pan-Asia........ Japan.......   S.Korea... 
S.E. Asia.......        Hong Kong...  Taiwan.... 
Australia/NZ....        India.......  China..... 
                          
   OTHER MARKETS:                                               
Wall Street ....         Gold ....... Currency.. 
Eurostocks.....         Oil ........  JP bonds... 
ADR Report .....       LME metals. US bonds.. 
Stocks News US.. Stocks News Europe     
                         
   DIARIES & DATA:                                              
Indian Data Watch   Asia earnings diary 
 
U.S. earnings diary     European diary       
 
Indian diary          Wall Street Week Ahead  
Eurostocks Week Ahead                                   
                           
   TOP NEWS:                                                    
   For top Asian company news, double click on:       
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   Forex news        Global Economy news  
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   Politics/General    Asia Macro data      <ECONASIA   
  

 (Editing by Prateek Chatterjee;
manoj.dharra@thomsonreuters.com)
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