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Markets end flat as Bharti stocks decline

Markets end flat as Bharti stocks decline
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First Published: Mon, May 25 2009. 04 26 PM IST
Updated: Mon, May 25 2009. 04 26 PM IST
Mumbai:Indian shares rose 0.2% on Monday, but Bharti Airtel fell 5.4% after the leading telecoms firm said its plan to buy 49% of South Africa’s MTN would dilute earnings in the first year.
The main index was supported by non-ferrous metals producer Sterlite Industries, which rose on higher metal prices, and drugmaker Ranbaxy Laboratories that jumped 21% after its Japanese parent Daiichi Sankyo replaced the Indian firm’s chairman and chief executive.
Government-run State Bank of India and private-sector HDFC Bank were among the other major laggards as investors took profits after the BSE index rose 14.1% last week, taking gains to more than 70% since early March.
Bharti erased early gains of 8.5% and fell as much as 8.25% before pulling back towards the close.
“Investors were initially excited when the news of the deal came out, but as the finer print surfaces the market is disappointed,” Gajendra Nagpal, chief executive of Unicon Financial Intermediaries, said.
The 30-share BSE index ended up 0.19%, or 26.07 points, at 13,913.22, with 19 stocks advancing, after rising as much as 1% and falling 0.5% at one stage.
The benchmark’s rise last week was its most in 17 years, after the ruling coalition won a general election decisively during the previous weekend and raised hopes for pro-market reforms.
“Till the new government presents its budget, there will be expectations built up and we may not see a major correction in the market,” D D Sharma, vice president at Anand Rathi Securities, said.
Bharti fell Rs46.45 to Rs811.40, after falling to as low as Rs787.
Sterlite gained 5.9% to 538.10, while Ranbaxy jumped Rs45.8 to Rs266.70.
Leading lender State Bank of India and private-sector rival HDFC Bank shed 0.7 to 0.8%.
State-run explorer Oil & Natural Gas Corp fell 0.6% to Rs1,039.10, on a newspaper report the new government plans to cap profits of oil producers as part of a subsidy-sharing system for the sector.
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First Published: Mon, May 25 2009. 04 26 PM IST
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