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Indian shares may ease on subdued Asia, SBI eyed

Indian shares may ease on subdued Asia, SBI eyed
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First Published: Tue, Aug 14 2007. 10 09 AM IST
Updated: Tue, Aug 14 2007. 10 09 AM IST
Mumbai: Indian shares could ease on 14 August, tracking mostly lower Asian markets on concerns about the fallout from the US subprime mortgage crisis.
Shares in State Bank of India will be watched after the Times of India reported the top lender aimed to raise nearly Rs1.8 trillion ($44.3 billion) over the next five years, including a Rs145-billion follow-on share sale in the fiscal year that ends in March 2008.
But the focus will be on the global outlook.
“The market is completely confused on the direction. The confusion is now drying up the volumes, as there is lack of conviction... downside risk appears more than upside,” Bangalore-based analyst Deepak Singh wrote in a note to clients.
The 30-share BSE index rose 1% to 15,017.21 on Monday 13 August, recovering from a one-month low at the end of last week as fears of a global credit squeeze eased slightly.
The index is up nearly 9% on the year, but down 5.4% from a record of 15,868.85 hit on 24 July.
Brokerage IndiaInfoline said volatility was likely to continue in the near term due to the uncertainty surrounding the U.S. subprime issue that has raised concerns about the availability of global credit. Shares in HCL Technologies will be on the radar after the No. 5 software services exporter said its June quarter profit more than doubled as it won outsourcing contracts from firms seeking to cut costs.
Asian stocks were mostly subdued on Tuesday after a disappointing performance on Wall Street. By 0342 GMT, Seoul <.KS11> fell 0.88 percent, Sydney <.AXJO> was down 0.62 percent while Tokyo <.N225> was trading 0.17 percent higher.
The 50-share NSE index rose 0.93% to 4,373.65 on Monday 13 August. The Nifty August futures ended at a discount of 18.05 points to the spot index, narrowing from 34.15 points in the previous session on short-covering.
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First Published: Tue, Aug 14 2007. 10 09 AM IST