Shares seesaw; Tata Steel up, RCom down

Shares seesaw; Tata Steel up, RCom down

Mumbai: Indian shares fluctuated on Monday amid subdued Asian peers, with Tata Steel rising more than 3% after forecast-beating quarterly results.

Tata Steel rose as much as 3.1% after the steelmaker reported better-than-expected quarterly earnings late on Friday on better demand and higher prices, JP Morgan raised its target price on the stock to Rs665 from Rs605 earlier while maintaining a neutral rating and HSBC raised it to Rs730 from Rs720, reiterating its overweight recommendation.

At 10:47 am, the BSE 30-share index Sensex was down 0.13% at 20,129.36 points, with 18 of its components declining. It rose as much as 0.3% early and fell to 0.5% later.

“There are no strong positive triggers around. So, we are only consolidating after the recent rise," said Sunder Subramaniam, senior manager of institutional sales at Sharekhan. “Market should hold around these levels for now."

Foreign funds have pumped a total of $28.5 billion into Indian shares so far in 2010, leading the benchmark 15.3% higher.

Financials gained ahead of monthly inflation data due by 1:00 pm.

The wholesale price index (WPI) in October probably rose 8.44% from a year earlier, a touch slower than its 8.62% increase in September, a Reuters poll showed.

Leading lenders State Bank of India, ICICI Bank and HDFC Bank gained between 0.6% and 1.9%.

Reliance Communications shed 2.2% after the second-largest mobile operator reported a 40% drop in quarterly profit, smaller than expected but still its fifth straight quarter of falling profits.

Tata Power climbed 0.5% after the top private-sector utility said late on Friday its September quarter net profit rose 36%.

In the broader market, losers outnumbered gainers in a ratio of 1.5:1 on volume of 154 million shares.

The NSE 50-share index Nifty was down 0.2% at 6,058.50 points.

Elsewhere, the MSCI’s measure of Asian markets other than Japan was down 0.6%, while Japan’s Nikkei rose 0.9%.