India shares flat; Infosys Q3 results awaited

Thu Jan 10, 2013 5:16pm IST

Related Topics

Stocks

   

* BSE ends 0.02 pct down; NSE closes 0.05 pct lower
    * Citi cuts India to 'underweight'
    * Infosys' Dec earnings may miss expectations

    By Manoj Dharra
    MUMBAI, Jan 10 (Reuters) - Indian shares ended flat on
Thursday as Infosys and other software services exporters fell
ahead of quarterly results, while cement makers slipped on
near-term outlook concerns.
    However, oil stocks such as Oil & Natural Gas Corp 
gained after government officials told reporters a long-awaited
proposal to raise fuel prices would be submitted to the federal
cabinet. 
    Citigroup also issued a cautionary note, saying a rebound in
economic growth, corporate risk appetite and the investment
cycle may not be as strong as current expectations, and
downgraded India to "underweight" from "neutral" as part of its
emerging markets review. 
    However, analysts say caution has prevailed this week ahead
of industrial output and Infosys' earnings on Friday.
 
    "Infosys' earnings and guidance would set the mood for the
Q3 earnings season, which would be key for markets till the RBI
policy," said Deven Choksey, managing director at KR Choksey
Securities. 
    Consulting strategy and possible acquisition targets would
be key for Infosys, Choksey added. 
    The BSE index fell 0.02 percent, or 3.04 points, to
end at 19,663.55. 
    The broader NSE index ended 0.05 percent, or 2.85
points, lower at 5,968.65.
    Infosys fell 0.4 percent. The country's
second-largest software exporter's October-December earnings
could fall 1.8 percent short of consensus expectations, while
revenues may disappoint by 3.2 percent, according to Thomson
Reuters StarMine estimates. 
    Ambuja Cements fell 2.7 percent and Ultratech
 ended 3.2 percent lower, while India Cements 
slipped 2.5 percent. 
     J.P. Morgan cautioned the near-term outlook for Indian
cement companies remained "hazy", in contrast with market
consensus for a strong V-shaped recovery in infrastructure
spending over the next 12 months. 
    Tata Consultancy Services ended down 1.43 percent.
    The December quarter is a seasonally weak one for technology
companies, and analysts are awaiting management comments on
customers and any changes in hiring targets, Deutsche Bank said
in a note.
     Shares of Colgate Palmolive India Ltd ended 1.1
percent lower at 1,524.75 rupees after UBS downgraded the
company to "neutral" from "buy", saying the stock has well
outperformed the consumer sector since Oct. 1, 2012.
 
    Bharat Heavy Electricals Ltd fell 2.11 percent and
Indiabulls Power Ltd was down 4.1 percent after
Barclays Capital and Citigroup raised concerns over two thermal
power projects the companies were involved in. 
    However, ONGC posted its biggest single-day gain since Nov.
30, 2012, after the oil ministry moved a proposal to the federal
cabinet to raise diesel prices. 
    ONGC shares rose 3.44 percent to their highest level since
Feb. 22, 2012, and Oil India ended 4.13 percent up.
    Tata Motors ended 1.9 percent higher, extending
gains from the previous day, following upgrades by CLSA and
Credit Suisse. Earlier in the session, its market capitalisation
crossed the 1-trillion-rupee ($18.23 billion) mark, putting in
what is now a 14-member club that also includes Reliance
Industries Ltd.

 (Additional reporting by Abhishek Vishnoi; Editing by
Subhranshu Sahu)
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

Monetary Policy

REUTERS SHOWCASE

Monetary Policy

Monetary Policy

Fed renews zero rate pledge, but hints at steeper rate hike path.  Full Article 

Eyeing Stocks

Eyeing Stocks

Interview - EPFO chief urges green light to buy stocks  Full Article 

Stimulus Reports

Stimulus Reports

China cenbank injects $81 bln into major banks to support economy - reports  Full Article 

Ranbaxy Investigation

Ranbaxy Investigation

Ranbaxy says U.S. authorities seek information on pricing data.  Full Article 

E-Commerce

E-Commerce

Tiger Global leads $60 million investment in Quikr.  Full Article 

Monsoon Update

Monsoon Update

Delayed retreat of monsoon rains to start this weekend  Full Article 

Financing Deal

Financing Deal

IndiGo agrees $2.6 billion aircraft finance deal with China's ICBC  Full Article 

Grim Outlook

Grim Outlook

Sony deepens loss estimate on struggling smartphone business  Full Article 

Reuters India Mobile

Reuters India Mobile

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