October 7, 2019 / 4:53 AM / in 14 days

Indian shares volatile; Yes Bank gains

BENGALURU, Oct 7 (Reuters) - Indian shares wobbled on Monday as prospects of slower domestic economic growth offset optimism stemming from strong U.S. unemployment data that sent Asian peers higher.

The broader NSE index was up 0.24% at 11,201.70, as of 0429 GMT, while the benchmark BSE index rose 0.36% at 38,804.17.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.18% after data showed the U.S. unemployment rate dropped to the lowest in almost 50 years, easing concerns of a slowdown in the world’s largest economy.

Back home, the Reserve Bank of India (RBI) on Friday cut its real GDP growth forecast for 2019-20 to 6.1% from a prior projection of 6.9% as it reduced the policy interest rates by 25 basis points.

“The RBI’s cutting down of growth forecast meant that even the (central) bank is not very hopeful of a big turnaround in growth,” said Deepak Jasani, head of Retail Research at HDFC Securities.

Yes Bank shares gained as much as 9% after Mint reported the bank was wooing tech giant Microsoft Corp as a strategic investor, while another daily Business Standard said the lender was planning a $1 billion rights issue by December.

Oil marketing companies Bharat Petroleum Corp fell 2.6%, while Indian Oil Corp was down as much as 2.81%.

Among sectors, the NSE media index was the top drag, shedding 2.63%, as heavyweight Zee Entertainment Enterprises fell as much as 14.17%. (Reporting by Derek Francis in Bengaluru; Editing by Aditya Soni)

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