Mumbai: Indian shares logged their fourth weekly rise in five gaining 1.5% this week, but shed 0.2% on Friday led by losses in energy major Reliance Industries and export-focused software firms.
Reliance Industries, which has the heaviest weight on the main index extended Thursday’s losses, shedding 0.7% to Rs1,000.30, its lowest close in two months.
Delay in gas production ramp up plans continued to hurt the sentiment and the recent overseas acquisitions may take time to produce results, dealers said.
The firm said on Thursday it would pay $392 million to take a 60% interest in a joint venture with Carrizo Oil & Gas, its third shale gas acquisition in the United States this year.
Tata Motors raced as much as 4.7% in the day to Rs900.90 rupees, its highest since January 2007, on expectations the company which produces world’s cheapest car, the Nano, may post robust June-quarter results.
The 30-share BSE index fell 0.16% or 28.84 points to 18,143.99, with 22 components losing ground. The stock closed 1.8% higher at Rs797.80. The 50-share NSE index or Nifty shed 0.1% to 5,439.25 points.
“The market is looking for fresh triggers now. However, liquidity flow from overseas should save it from sharp downside and keep it going,” said Nitin Rakesh, CEO of Motilal Oswal’s asset management business.
“The global interest in India is not going to fade, as looking at the way things are shaping up overseas, they only have a few lucrative options.”
So far in 2010, the index has gained 3.9%, outperforming emerging market peers such as Brazil’s Bovespa and China’s Shanghai Composite Index which have shed 0.3% and 18.9% respectively, but lagging Russia’s RTS Index which has climbed 5.3%.
Foreign funds have pumped in $11 billion so far this year in Indian equities, after investing a record $17.5 billion in 2009.
Cigarette-to-hotel business ITC rose 1.9% as the company rides on rising consumption in world’s second-fastest growing major economy after China. The stock is up 26.7% year to date.
Shares in Tata Motors, which reports results on Tuesday, closed 3.9% higher at Rs894.35.
Tata Motors is expected to swing to a net profit of Rs9.8 million for the June quarter from a loss of 3.3 billion a year ago, a Reuters poll of analysts showed.
Top utility vehicle maker Mahindra & Mahindra bounced back 0.7% after declining 1.4% in the previous session.
Financials closed mixed. Leading banks State Bank of India ICICI Bank and HDFC Bank dropped between 0.2% and 1% while mortgage lender Housing Development Finance Corp climbed 1.4%.
Leading outsourcers Tata Consultancy Services and Infosys dropped 1.3% and 0.3% respectively after the recent rally in the pack, still gaining 2.9% and 2.7% in the week.
In the broader market, gainers outnumbered losers in a ratio of 1.1:1 in a relatively better volume of 454 million shares.
Dish TV and Hathway Cable gained 6.4% and 8.4% respectively, the Telecom Regulatory Authority of India recommended phasing out of analogue TV services by 2013.
Anant Raj Industries shed 3.3% to Rs115.70 after the real estate firm said late Thursday its April-June net profit dropped 34%.
BGR Energy rose as much as 3.9% to 814 rupees, its highest level since January 2008, as it said it will set up two joint ventures with Japan’s Hitachi Ltd to make power equipment in India, with investment totalling about Rs4,400 crore.