Mumbai: Indian shares seesawed on Friday as investors took profits after the market climbed to a 16-month closing high in the previous session and as a long weekend and weak regional peers weighed on sentiment.
Drug maker Dr Reddy’s Laboratories jumped 7.8% to its highest in more than three years after a newspaper said Britain’s GlaxoSmithKline was in talks to buy a 5% stake in the firm for about $150 million.
A spokesman for the company said he would not comment on the report.
Banks drifted lower with the sector index dropping over a percent after rising 14.7% in 11 straight sessions.
By 11:52am, the 30-share BSE index was down 0.21% at 16,675.85 points, with 11 components declining. The 50-share NSE index was down 0.34% at 4,948.60.
“It’s just profit booking before the extended weekend. Also, weak Asian markets have kept the sentiment down,” said Ambareesh Baliga, vice-president of Karvy Stock Broking.
The market is closed on Monday for a public holiday.
Reliance Industries rose 0.2% to Rs2,090, after falling 4.45% on Thursday when the energy giant sold 15 million shares raising about $660 million.
“This does not alter our positive outlook,” Goldman Sachs said in a note reiterating its ‘buy´ rating on the stock. It said the company’s exploration and production business would improve its earnings profile.
Dr Reddy’s was trading up 3.6% at Rs865, after rising as high as Rs900.
Telecoms major Bharti Airtel was down 1.4% at Rs427, after South African President Jacob Zuma said the company’s proposed tie-up with mobile phone group MTN was held up by legal problems in India.
ICICI Bank and HDFC Bank shed 2.8% and 0.8% respectively. State Bank of India bucked the trend, and rose 0.3 percent.
In the broader market, gainers and losers were almost equal, on moderate volume of 222 million shares.
“We should see rangebound trade next week as there are no immediate triggers. Nifty has strong support at 4,750 levels in the near term,” Baliga said.
Asian stocks were weak with Japan’s Nikkei declining 0.7%, while MSCI’s measure of other Asian markets was down 0.5%.