Mumbai: Shares dropped 1% on Thursday afternoon, as traders booked profits while weak world stocks added to the negative sentiment.
At 2:23pm, the 30-share BSE index was down 1.05% at 20,656.37 points, with 24 components declining. The 50-share NSE index was down 0.9 percent at 6,217 points.
Markets see-sawed in the morning with quarterly earnings dictating stock-specific movements, while the downside seemed to be limited on continued foreign fund inflows. DLF dropped 2%, after the top real-estate firm said late on Wednesday its quarterly net profit declined 5% versus a year ago as the company faced rising interest rates and higher land and construction costs.
Ranbaxy rose as much as 3.5% to 624.90 rupees its highest level in nearly 6 years, after the drugmaker’s September quarter net profit soared, beating expectations.
At 10:44am, the 30-share BSE index was down 0.22% at 20,829.95 points, with 18 of its components declining. It rose as much as 0.3% early. The 50-share NSE index was down 0.1% at 6,267.95.
“Market is consolidating after the run-up we have seen. All the key events are behind us. It is now waiting for the next trigger,” said Gajendra Nagpal, CEO of Unicon Financial.
“We see limited downside though, as we expect FII (foreign institutional investors’) inflows to continue and as fundamentals continue to be strong.”
The benchmark index is up more than 19% so far in 2010, with foreign funds pumping $28.5 billion in Indian primary and secondary equities.
Hindalco rose 3.1% after RBS raised its target price on the aluminium maker to 287 rupees from 229 rupees earlier while maintaining a buy rating.
State-run refiner Bharat Petroleum Corp gained 1.8% after it reported a net profit of Rs2140 crore for the quarter ended September compared to a loss a year ago.
In the broader market, gainers were nearly double the number of losers on volume of 189 million shares.
Elsewhere, the MSCI’s measure of Asian markets other than Japan was up 0.6%, while Japan’s Nikkei rose 0.2%.
Omaxe rose 1.8 to Rs153.60 after a top official told Reuters after trading hours on Wednesday that the real estate developer was planning to raise about Rs400 crore through a stake sale to institutions, expected to be launched by January.
Cipla traded 0.2% lower at Rs342.20, ahead of the drugmaker’s quarterly earnings announcement.
Eros International was up 2.5% at Rs202.65 as the movie distributor said its July-September net profit rose 13%.