Markets see-saw; metals in favour

Markets see-saw; metals in favour

Mumbai: Indian shares lacked solid direction as they bounced around their previous close on Tuesday morning, capped by weaker Asian markets although underlying sentiment remained positive on robust earnings reports.

Leading outsourcers Tata Consultancy Services and Infosys Technologies were down 0.9% and 0.5% respectively, but are still up 11% and 7% respectively since Infosys’ results on 12 January.

By 10:07am, the 30-share BSE Index was down 0.08% at 17,627.54, with half of its components declining. The 50-share NSE index was down 0.1% at 5,271.50.

“There are more positives to support an upward move in the market in the near term than negatives," said Rakesh Rawal, head of private wealth management at Anand Rathi Financial Services.

“December quarter results, outlook for economic growth, clearly point to an upward movement," said Rawal.

India’s gross domestic product growth is expected to accelerate in 2010 from 2009, Minister of Commerce and Industry, Anand Sharma said.

Base metals prices rallied, helped by a weaker dollar and optimism about Chinese imports.

Non-ferrous metals producer Sterlite Industries was up 1.6% at Rs880.95, and aluminium maker Hindalco Industries climbed 0.5% to Rs168.10.

Tata Steel, the world’s eighth-largest steel maker, climbed 0.7% to Rs642.

Top private sector iron ore miner Sesa Goa rose 1.2% to Rs414.80 after its standalone net profit for the December quarter rose 29%.

In the broader market, gainers led losers by nearly 2:1 on volume of 128 million shares.