Indian shares little changed; Tata motors, Infosys gain

Mon Dec 24, 2012 4:46pm IST

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* BSE up 0.07 pct; NSE gains 0.14 percent
    * Maruti shares fall on outlook concerns
    * Market eyes solution to U.S. fiscal cliff

    By Manoj Dharra
    MUMBAI, Dec 24 (Reuters) - Indian shares edged slightly
higher on Monday as Tata Motors extended its recent rally on
hopes of improved sales at its key unit Jaguar Land Rover, while
short-covering helped technology shares such as Infosys advance.
    Volumes were thin, with global shares steady, as the holiday
mood set in across markets despite tensions over the U.S. budget
dispute. 
    The thin volumes could exacerbate the volatiliy expected
later this week ahead of the monthly derivatives expiry on
Thursday. 
    "Indian shares are adopting a wait-and-watch policy to await
the outcome of the U.S. fiscal cliff and not moving in a
tangible manner," said Kaushik Dani, fund manager at Peerless
Mutual Fund.
    On the domestic front, third-quarter earnings will also
start and developments on earnings will determine the direction
of the market, Dani added.
    The benchmark BSE index rose 0.07 percent, or 13.09
points, to end at 19,255.09.
    The broader NSE index rose 0.14 percent, or 8.05
points, to end at 5,855.75.
    The stock market is closed on Tuesday for Christmas. 
    Tata Motors Ltd ended 2.52 percent higher,
extending a rally on hopes of improved sales at its key unit
Jaguar Land Rover and as the company planned investment into
passenger vehicles. 
    The auto-maker's shares have gained 9.5 percent so far this
month, as of Friday's close.
    Technology shares gained on short-covering as the recent
underperformance was seen as overdone. Infosys Ltd 
rose 1.1 percent after falling 5.75 percent this month, as of
Friday's close.
    Tata Consultancy Services Ltd was up 0.6 percent.
    Analysts expect the technology sector to see some pick-up in
outsourcing activity as the sector has been beaten down in 2012
due to the eurozone crisis and unfavorable election rhetoric in
the U.S. 
    Glenmark Pharmaceuticals gained 4.23 percent after
a unit entered into a development pact with Forest Laboratories,
which will make an upfront payment of $6 million to the Indian
drugmaker. 
    Loss-making Kingfisher Airline rose 5 percent, its
maximum daily limit, after TV news channels reported it had
submitted a revival plan to the civil aviation authorities,
without citing sources. 
    Kingfisher officials were not immediately available for
comment.
    Oil & Natural Gas Corp shares fell 1.9 percent
after the stock went ex-dividend on Monday. The explorer had
offered a dividend of 5 rupees for 2012/13. 
    Shares in Tata Steel fell 0.5 percent after the
company reported a clash between contract workers and security
guards at its main Jamshedpur plant in eastern India on Monday.
 
    Maruti Suzuki Ltd shares ended 1.73 percent lower
on concerns about its domestic passenger car sales outlook.
    Angel Broking says Maruti Suzuki expects "muted" volume
growth of around 6 percent in fiscal 2013 and 6-7 percent in
fiscal 2014, according to a note on Monday, citing the
automaker's management. 

 (Editing by Sunil Nair)
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