* BSE index gains 0.16 pct; NSE declines 0.05 pct
* Winter session of parliament key
By Abhishek Vishnoi
MUMBAI, Nov 19 India's benchmark BSE index edged
higher on Monday, rebounding from two-month lows, as Bharti
Airtel advanced after more brokerages upgraded the stock and
auto makers rose on hopes of rising sales during the festival
However, the broader NSE fell, with sentiment cautious ahead
of the winter session of parliament which is set to start on
Parliament is due to meet amid a slew of negative news flows
around the current account and fiscal deficits, a slowing
economy and the prospect of no monetary relief until 2013.
Analysts says the government's will to pass reforms is
critical to revive the stock markets that have faltered over the
past month and a half.
"Going by the track record of the opposition, what happened
in last session, there can be drama that need not be positive,"
said V.K. Vijayakumar, an investment strategist at Geojit BNP
The market also remains sceptical about the head winds in
the eurozone, added Vijayakumar.
The benchmark BSE index rose 0.16 percent, or 29.63
points, to end at 18,339, snapping six previous consecutive
sessions of falls that saw the benchmark index retreat a total
of 3.1 percent.
However, the broader NSE index fell 0.05 percent, or
2.65 points, to 5571.40, marking its lowest close since
Telecom stocks extended a recent rally after last week's
auction of 2G spectrum fetched lower prices than the government
Shares in Bharti Airtel Ltd rose 2.7 percent,
posting five straight days of gains as more brokerages upgraded
the stock after the 2G spectrum auction.
Credit Suisse and Goldman Sachs upgraded Bharti to the
equivalent of 'buy', citing greater clarity on the regulatory
front and reduced competitiveness in the domestic sector.
Shares in Maruti Suzuki India Ltd rose 3.9 percent
and Mahindra & Mahindra Ltd gained 1.6 percent on
hopes of rising sales this month as part of the festival season.
Both Maruti and Mahindra & Mahindra will outperform the
sector in the near-term, Indian brokerage Sharekhan said in an
email to clients, citing a "strong" order
Other auto makers that gained included Bajaj Auto Ltd
which rose 2.04 percent. Hero MotoCorp Ltd
was up 1.5 percent.
Shares in ITC Ltd also gained on value buying after
falling 5.3 percent over the last six sessions.
Shares in Honeywell Automation India Ltd surged
16.5 percent after news channel CNBC TV 18 reported parent
company, Honeywell Asia Pacific was considering delisting the
shares of the company, citing unidentified sources
However, Honeywell Automation called the report incorrect in
a statement to the exchange.
Among the decliners, rate-sensitive stocks fell on worries
that last week's data showing easing inflation is unlikely to
result in a repo rate cut this year.
HDFC Ltd fell 1.3 percent, while Axis Bank Ltd
ended 1 percent lower.
Shares in India's Tata Global Beverages Ltd fell
5.33 percent after Morgan Stanley downgraded the stock to
"underweight" from "equal weight".
Morgan Stanley said the contribution from the Starbucks JV
will be limited and recommended booking profits on Tata Global.
For additional stocks on the move double click
FACTORS TO WATCH
* Yen hits 7-month low on BOJ easing worries, euro gains
* Oil rises towards $110 on Mideast, U.S. budget hopes
* World shares rally on U.S. fiscal hopes
* 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.....
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
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
(Additional reporting by Manoj Dharra; Editing by Rafael Nam
and Anupama Dwivedi)