Markets down 0.1% in choppy trade; Reliance gains

Markets down 0.1% in choppy trade; Reliance gains

Investors largely preferred to stay on the sidelines and hoped for comfort on the weak US economy and troubled euro zone from meetings of the US Federal Reserve later in the day and Group of 20 (G-20) leaders this week.

The main 30-share BSE index closed 15.98 points lower at 17,464.85, with half of its components in the red, dragged by losses in Bharti Airtel and ICICI Bank . It rose as much as 0.77% earlier in the day.

The benchmark, which is down more than 14% in 2011, has been battered this year as surging inflation and interest rates dimmed the growth outlook for the economy and corporate earnings.

The global economic uncertainty has also pushed investors away from risky assets.

“Ahead of the G-20 summit, which begins tomorrow, markets would remain volatile and the volumes low. This will continue for some time," said K.K. Mital, head of portfolio management at Globe Capital.

Profit booking sent top telecoms firm Bharti Airtel shares down 2.56%, after having gained about 4% last week, while private-sector lender ICICI Bank fell 1.12%, after adding more than 7% last week.

The world’s largest two-wheeler maker Hero MotoCorp fell 2.25% after its October sales rose a mere 1.3%.

However, smaller rival Bajaj Auto closed up 0.3% after its October sales rose 7 % from a year ago.

Shares in index heavyweight Reliance Industries rose 1.3% as value buying emerged after the stock shed 4.4% in the previous two sessions.

India’s largest utility vehicles maker Mahindra & Mahindra rose 0.8% to Rs840 after it posted a 20% rise in vehicle sales last month, shrugging off a series of interest rate rises.

India’s central bank last month raised interest rates for the 13th time in a tightening cycle that began in early 2010, on expectations that persistently high inflation will finally begin to ease starting in December.

Top lender State Bank of India added 0.42% while No. 3 player HDFC Bank edged up 0.17%.

“Banking stocks had taken a beating and since we are not expecting any further rate hike, the sector is recovering," said Gajendra Nagpal, chief executive at Unicon Financial Intermediaries.

“The initial fall in the market (today) was a surprise and there is no reason why market should go back to 4,800 levels (Nifty) as positive sentiments are building," Nagpal said.

Construction firm Jaiprakash Associates rose 0.86% on attractive valuations while Larsen and Toubro ended flat.

In the broader market there were 1.07 losers for every gainer on a moderate volume of 599.67 million shares.

The 50-share NSE index ended unchanged at 5,258.45 points.

The MSCI’s broadest index of Asia Pacific shares outside Japan rose 0.33%, while Japan’s Nikkei slipped 2.21%.

Stocks that moved

SKF India rose more than 1% intraday, after its September quarter net profit jumped 36%. It gave up some ground and closed up 0.2%.

SKS Microfinance closed up 1.33% after its board approved raising up to Rs900 crore via qualified institutional placement.

Piramal Healthcare added 1.44% after it settled a patent litigation with Baxter Healthcare for generic version of Suprane.

Allahabad Bank jumped 8% after its second quarter net profit beat forecast and rose 21%.

Merck fell 2.16% after its July-September net profit fell 19%.