Indian shares crawl higher; outlook remains grim

Tue Sep 24, 2013 4:40pm IST

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Stocks

   

* BSE index gains 0.1 pct; NSE ends 0.05 pct higher
    * FIIs snap 5-day buying streak of Indian shares
    * SBI falls after Moody's downgrade

    By Abhishek Vishnoi
    MUMBAI, Sept 24 (Reuters) - Indian shares ended with mild
gains on Tuesday after earlier rising nearly 1 percent,
reversing a two-day losing streak, on value buying in beaten
down rate-sensitive shares, while the NSE index found support
around its 200-day moving average.   
    However, dealers said selling by foreign institutional
investors (FIIs) in Indian stocks on Monday, weighed on shares
at higher levels. 
    FIIs sold Indian shares worth of 805.7 million rupees on
Monday, snapping their five-day buying streak. They had bought
around 127 billion rupees ($2.03 billion) worth of Indian shares
over the previous 12 sessions till Friday, regulatory data
showed. 
    Despite Tuesday's gains, the overall trend remained weak due
to lack of positive triggers in the near term, while the expiry
of equity derivatives contracts on Thursday was expected to
increase the volatility, dealers added.
    "Markets may remain jittery and nervous in the short term as
domestic data points remain weak, while election will take
prominence over reforms," said Phani Sekhar, a fund manager at
Angel Broking. 
    The benchmark BSE index edged up 0.1 percent, or
19.25 points, to end at 19,920.21.
    The broader NSE index inched up 0.05 percent, or
2.70 points, to end at 5,892.45, after earlier taking support
around its 200-day moving average at 5,841.
    Among lenders, Housing Development Finance Corp Ltd
 rose 1.6 percent, while ICICI Bank Ltd 
gained 0.2 percent. 
    In auto shares, Bajaj Auto Ltd rose 2.7 percent,
while Maruti Suzuki India Ltd advanced 0.7 percent.
    Tata Motors Ltd rose 1 percent, while Mahindra and
Mahindra Ltd gained 1.2 percent.
    Kingfisher Airlines Ltd, which has been grounded
for almost a year for want of cash, surged 9.7 percent after
Chairman Vijay Mallya said on Tuesday it was in talks with a
foreign investor for a potential stake sale. 
    Glenmark Pharmaceuticals Ltd rose 1.5 percent
after the U.S. Food and Drug Administration approved a key drug
for the company, while Sun Pharmaceutical Industries Ltd
 fell 0.3 percent as former's drug was seen negative for
its unit Taro Pharmaceutical Industries Ltd.
 
    State Bank of India, the country's largest lender,
also fell 0.6 percent after ratings agency Moody's downgraded
its outlook on the bank's financial strength rating to
'negative' from 'stable'. 
    
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Euro slips as German Ifo falls short of expectations    
* Oil slips below $108 ahead of Iran nuclear talks         
* Shares edge lower on policy doubts, Ifo eyed       
* 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      

 (Editing by Anand Basu)
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