Markets pare gains as Reliance falls

Markets pare gains as Reliance falls

Mumbai: Indian shares turned negative on Friday afternoon, dragged by energy giant Reliance Industries which tumbled as partner Hardy Oil said a D9 well will be plugged and abandoned.

Reliance Industries shed 3.45% to Rs2,060.

At 2:03pm, the 30-share BSE index was up 0.01% at 16,790.81 points, with 13 of its components losing. The 50-share NSE Index was up 0.3% at 5,002.75.

Indian shares rose 0.8% on Friday, helped by a rise in their regional peers, and leading lenders ICICI Bank and State Bank of India recouped some of their losses from the three prior sessions.

Banks bounced back, after being battered in the last four sessions and the sector index was up 1.3%.

State Bank was up 1.3% at Rs2,355, while ICICI Bank climbed 1.7% to Rs905.80.

By 11:35am, the 30-share BSE Index was trading up 0.68% at 16,904.10, with 25 of its components gaining. It rose to as much as 17,006.77 in early deals. The 50-share NSE index was up 0.67% at 5,021.95.

“I think the market should rest for some time. There is no clarity on FY11 earnings. It is all guesswork that’s happening," said Nilesh Doshi, president of equities at Techno Shares.

“In the near term, market could either be rangebound or we may see a downward bias, as post earnings there is no major trigger to drive it up," he said.

Engineering and construction major Larsen & Toubro, extended its losses, and was down 1.9% at Rs1,577.95, as its September quarter sales lagged forecasts and it said funding delays were still slowing some projects

Energy giant Reliance Industries, dragged 0.7% lower to 2,118.40, after a Citigroup report raised concerns that rupee strength may impact its earnings “meaningfully", dealers said.

“Strength in INR (rupee) poses downside risks to earnings through refining exports, landed cost benchmarking of domestic petchem sales, and dollar-denominated KG (Krishna-Godavari) revenues," Citigroup Global Markets said in a note on Thursday.

The country’s third-largest software services exporter Wipro climbed 1.6% to Rs586 after it said late on Thursday it won a 10-year technology outsourcing contract from the airport in national capital New Delhi.

Around 135 million shares changed hands, with gainers beating losers in the ratio of 2.4:1.