New Delhi: Shares dropped 0.2% in choppy trade on Monday after weak results from a few companies, although the fall was limited by investor optimism as Greece edged closer to securing a bailout fund.
At 10:15 am, the main 30-share BSE index was down 0.20% at 17,713.04 points. Almost two thirds of its components were in the red.
The benchmark, which was one of the world’s worst performers dropping a quarter last year, has gained almost 15% this year.
Foreign funds have invested about $4 billion in local equities so far this year, data from the Securities and Exchange Board of India showed. This is in stark contrast to 2011, when they were net sellers of about $500 million.
“There are no triggers now,” said Neeraj Dewan, a director at Quantam Securities. “From now till UP (Uttar Pradesh) elections and the budget, there will be no triggers and the market will be volatile.”
“We will just follow the global markets. Global markets took a pause on Friday, and we are taking a pause today.” he said.
Elections are currently on in Uttar Pradesh, a political bellwether region, and investors are also keenly awaiting the federal budget, due mid-March, for cues on government policies.
Reliance Industries, India’s top listed firm and which contributes more than a tenth to the benchmark, rose 0.47% to Rs847.25. On Sunday, the company said it signed a pact with France’s Dassault Aviation for partnering in the Indian defence and homeland security sector.
DLF Ltd, the country’s largest listed developer, slumped 3% after its quarterly profit fell 45% and the company warned of rising costs in upcoming quarters.
Top lender State Bank of India fell 2% to Rs2,127.00 ahead of its quarterly results and was the biggest drag on the benchmark index. The bank, with exposure to several highly leveraged companies, is expected to post a modest 7% rise in standalone net profit.
Reliance Communications fell 2.2% after the country’s No.2 mobile operator reported its 10th straight quarter of declining profit as interest costs soared.
Bigger rival Bharti Airtel fell 0.80% while Idea dropped 1.7%.
The 50-share NSE index was down 0.29% at 5,366.00. In the broader market, there were about 1.2 losers for every gainer, with 173 million shares changing hands.
Asian shares and the euro gained modestly on Monday, relieved after Greece came a step closer to securing a much-needed bailout fund and avoiding a messy default.
The Greek parliament approved a deeply unpopular austerity bill, while serious violence broke out on the streets of Athens and spread across the country, highlighting the tough challenge the government faces to pursue with the reforms.
At 10:20 am, the MSCI’s measure of Asian markets other than Japan was up 0.73%, while Japan’s Nikkei was up 0.58%. South Korea’s Kospi rose 0.54%.
Stocks on the move
• Suzlon Energy Ltd fell as much as 9.6% after the wind turbine maker on Saturday posted a wider December-quarter loss of Rs286 crore.
• Diary and bakery products maker Britannia Industries rose 6% after its December-quarter net profit climbed 45%.
• Television broadcaster Sun TV slumped 6% after its December quarter net profit fell 25%.