October 7, 2013 / 11:09 AM / 4 years ago

Indian shares indecisive ahead of earnings, U.S. budget standoff

* BSE index falls 0.1 pct; NSE ends 0.02 pct lower
    * Technology shares make record highs
    * Apollo Tyres surges on Cooper Tier deal uncertainty

    By Abhishek Vishnoi
    MUMBAI, Oct 7 (Reuters) - Indian shares ended flat for a
second straight session on Monday as software services exporters
rose ahead of their quarterly results although sentiment overall
was broadly cautious due to the continued U.S. budget standoff.
    Outside of some sectors such as the technology services,
which are expected to see stronger overseas demand from key
markets, analysts worry that weakening economic growth and the
rupee volatility will constrain earnings.
    At the same time, global shares could come under continued
pressure as U.S. lawmakers showed no signs of making any
progress to resolve the budget standoff and the looming debt
    Caution is thus likely to prevail, with Infosys Ltd
 set to report its quarterly results on Friday, while
India is due to post industrial output data for August also on
the same day.
    "The Nifty has closed on a flat note and just near the 5,900
level for a third straight session. This clearly shows that the
market is showing strength from lower levels, however caution
ahead of quarterly results and weaker global cues have limited
the upside too," said Nidhi Saraswat, a senior research analyst
at Bonanza Portfolio Ltd. 
    The benchmark BSE index ended down 0.1 percent, or
20.85 points, at 19,895.10 after falling as much as 1.3 percent.
    The broader NSE index fell 0.02 percent, or 1.15
points, to 5,906.15.
    Among blue-chip shares, banking stocks slumped. ICICI Bank
Ltd fell 1.6 percent, while HDFC Bank Ltd 
ended 1 percent lower. 
    The NSE's bank index fell nearly 10 percent in
August before rising 6.3 percent in September.
    Tata Motors Ltd fell 0.6 percent on profit-taking
after touching an all-time high of 364.80 rupees on Friday. 
    However, among stocks that gained, Apollo Tyres Ltd
 rose 4.7 percent after the Indian company and
U.S.-based Cooper Tire & Rubber Co disagreed over
whether the Indian firm should pay a lower price in its $2.5
billion takeover offer. 
    Software services exporters extended gains on expectations
of strong results for the July-September quarter, given a
recovery in the sector's core markets, analysts said.
    Tata Consultancy Services Ltd ended up 2.8 percent
after touching a record high of 2,097.70 rupees, while HCL
Technologies Ltd closed 2.1 percent higher after
reaching an all-time high of 1,129.55 rupees. 
    Infosys Ltd ended 0.2 percent higher ahead of its
September-quarter results on Friday.
   For additional stocks on the move double click        
   FACTORS TO WATCH                                             
* Dollar struggles as U.S. budget standoff persists       
* Oil falls below $108 as Gulf of Mexico storm eases       
* U.S. debt ceiling fears knock shares, dollar       
* 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                                   
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   For top Asian company news, double click on:       
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   Forex news        Global Economy news  
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   Politics/General    Asia Macro data      <ECONASIA 

 (Editing by Subhranshu Sahu)

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