Indian shares edge higher; gain for 4th day as defensives lead

Mon Nov 5, 2012 5:17pm IST

Related Topics

Stocks

   

* BSE ends up 0.04 pct; NSE adds 0.11 pct
    * Caution looms ahead of U.S. election, Greek vote
    * Cement makers gain on Oct shipment hopes

    By Abhishek Vishnoi
    MUMBAI, Nov 5 (Reuters) - India's main indexes edged up
enough to mark a fourth consecutive gaining session on Monday as
defensive stocks such as ITC and drug makers rose amidst global
risk aversion ahead of U.S. elections and a key parliamentary
vote in Greece.
    Global shares fell, while the dollar strengthened to
two-month highs, on Monday as investors were unwilling to hold
too much risk, as the U.S. poll on Tuesday will be followed by a
Greek vote on austerity measures on Wednesday. 
    The risk aversion sent the Indian rupee to a 1-1/2
month low against the dollar, and analysts said global cues
would be critical for domestic markets in the days ahead. 
  
    Quarterly earnings results, including from blue chips Bharti
Airtel, Tata Motors, and State Bank of
India, due this week will also be key.
    "Domestic markets will be range-bound in coming weeks, will
take cues from U.S presidential elections," said Daljeet Singh
Kohli, head of research at India Nivesh Securities.    
    India's BSE index rose 0.04 percent, or 7.42
points, to end at 18,762.87 points, bringing its gains to 1.8
percent over the past four sessions.
    The 50-share NSE index rose 0.11 percent, or 6.50
points, to 5,704.20, closing above the psychologically important
5,700 level for the first time since Oct. 25, and has gained 1.9
percent over the previous four sessions.
    Defensive stocks gained, with some consumer good companies
favoured since they are seen as offering steadier returns and
potential for growth.
    Cigarette maker ITC rose 1.9 percent, while Colgate
Palmolive India rose 2.5 percent.
    Drug makers also advanced, especially following good
quarterly results announced recently.
    Dr. Reddy's Laboratories rose 1.3 percent,
advancing for a sixth consecutive session. India's no. 2
drugmaker posted on Tuesday a better-than-expected 32 percent
rise in quarterly net profit.  
    Cipla rose 0.9 percent ahead of its quarterly
earnings later in the day. 
    ACC rose 2 percent after October cement shipments
rose by 3.5 percent to 2.04 million tonnes, a sturdier
performance than expected. 
    Ambuja Cements gained 1.3 percent.
    However, Bajaj Auto dropped 2.1 percent on
profit-taking after hitting all-time high on Friday, when the
company had announced record domestic motorcycle sales for
October. 
    Shares in Crompton Greaves Ltd dropped 8.4 percent
after the power equipment makers said on Friday net profit
dropped 64 percent in the July-September quarter. 
    Citigroup downgraded Crompton Greaves to 'neutral' from
'buy' saying earnings were lower than expected due to losses 
and lower margins in its consumer business.
    Public sector banks with disappointing July-September
quarterly earnings fell.
    Vijaya Bank shares fell 2.9 percent after
reporting a 40 percent fall in September quarter net profit,
while Allahabad Bank shares fell 2.3 percent after
reporting a 52 percent fall in July-September net profit. 
  
    Jubilant Foodworks fell 2.2 percent after Morgan
Stanley downgraded the stock to "equal-weight" from overweight",
citing a recent out-performance in the shares and an absence of
near-term catalysts. 

    For additional stocks on the move double click  
             
   FACTORS TO WATCH                                             
* Euro hits 2-month low versus dollar on Greece worry     
* Oil down near $105 on Sandy, dollar strength             
* European shares fall as U.S. election looms        
* 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:       
   U.S. company news  European company news  
   Forex news        Global Economy news  
   Technology news  Telecoms news        
   Media news       Banking news           
   Politics/General    Asia Macro data      <ECONASIA   

 (Editing by; Additional reporting by Manoj Dharra)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

GROUP OF 20

REUTERS SHOWCASE

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

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