Reuters logo
Indian shares snap eight-day losing streak; WPI inflation key
February 12, 2013 / 10:59 AM / 5 years ago

Indian shares snap eight-day losing streak; WPI inflation key

* BSE index gains 0.52 pct; NSE ends 0.42 pct higher
    * Tata Motors gains on hopes of better-than-expected
    * January CPI, industrial output keep rate cut prospects low

    By Abhishek Vishnoi
    MUMBAI, Feb 12 (Reuters) - India's benchmark index rose on
Tuesday, ending an eight-session losing streak that had marked
its longest since May 2011, as ONGC gained after quarterly
earnings beat estimates, while Tata Motors rose ahead of its
results later this week.
    However, a recovery from what some analysts call the
oversold region came with limited confidence ahead of the
presentation of the 2013/14 budget late this month and doubts
about whether the central bank would cut interest rates
aggressively this year. 
    Data on Tuesday showed industrial output unexpectedly
contracted in December, but January consumer price-based
inflation remained above 10 percent, creating more uncertainty
about whether the Reserve Bank of India would focus on slowing
growth or on sticky inflation.   
    All eyes are now on January WPI data, due on Thursday, which
is expected to have eased to its lowest level in three years,
due to a smaller rise in prices of manufactured goods, according
to a Reuters poll. 
    "People are waiting for the budget. Inflation dynamics is
still the same as it used to be a month back with CPI at 10.8
percent. In short, concern on inflation continues to be there,"
said Dhananjay Sinha, co-head, institutional research, at Emkay
    The benchmark BSE index rose 0.52 percent, or
100.47 points, to end at 19,561.04, marking its first session of
gain in nine.
    The broader NSE index rose 0.42 percent, or 24.65
points, to end at 5,922.50, closing above the psychologically
important 5,900 level.
    Among gainers, shares in state-run Oil and Natural Gas Corp
Ltd rose 3.8 percent a day after its October-December
net profit beat market expectations. 
    Shares in Tata Motors rose 2.6 percent, marking its second
day of gains on expectations the auto maker would post on
Thursday better-than-expected results for the December quarter.
    Coal India shares rose 2 percent ahead of its
December quarter earnings on Wednesday.
    Exide Industries Ltd shares gained 1.4 percent
after Bank of America Merrill Lynch upgraded the stock to "buy"
from "underperform," given expectations of an "an imminent
increase in pricing power in automotive batteries.
    Among stocks that fell, Unitech Ltd dropped 17.6
percent -- its biggest daily percentage fall since Jan. 7, 2009.
    The falls came after the Central Bureau of Investigation
said it is looking into whether a prosecutor for the federal
agency discussed a probe into alleged corruption in the
allocation of mobile phone airwaves with one of the people being
    CNN-IBN TV and the Times of India reported that CBI senior
prosecutor A.K. Singh is suspected to have discussed the case
with Unitech managing director Sanjay Chandra in a recorded
conversation. Unitech strongly denied those reports.
    Shares of project finance provider IFCI Ltd ended
2.5 percent lower after reporting a 33 percent fall in December
net profit at 763.1 million rupees. 
    Jindal Steel and Power Ltd fell 3.3 percent after
reporting a 13 percent fall in December quarter net profit at
8.67 billion rupees. 

   For additional stocks on the move double click        
   FACTORS TO WATCH                                             
* Dollar index rises to 1-month high                      
* Brent stays above $118, calm over N.Korea nuclear test   
* Asian shares ease in subdued trade                 
* 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 

 (Additional reporting by Manoj Dharra; Editing by Sunil Nair)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below