Markets turn negative on export concerns

Markets turn negative on export concerns

Mumbai: Indian shares briefly turned negative on Wednesday afternoon, weighed down by export-led outsourcers that fell as the rupee rose to its highest in more than a year.

At 12:21pm, the 30-share BSE index was up 0.21% at 16,993.54 points, with 20 components advancing, after dropping to 16,946.87.

Indian shares climbed 0.7% around noon led by banks after markets across Asia rose on hopes for a world economic recovery.

Metals stocks such as Sterlite Industries and Hindalco Industries rallied as a shaky dollar boosted resource stocks in Asia.

Traders said they expected the market to move cautiously until quarterly earnings, which will be kicked off by software services bellwether Infosys Technologies on Friday, come through.

“For market to continue upwards, the numbers this time will have to exceed expectations," Neeraj Dewan, director of Quantum Securities said.

“Good earnings are already being factored in, as expectations of decent quarterly numbers have been there for a while."

The benchmark has risen 77% so far this year, fuelled by foreign portfolio inflows of $12.7 billion in the period.

Top lender State Bank of India climbed 0.4% to Rs2,167.90 while private sector ICICI Bank was up 0.4% at Rs942.15.

Non-ferrous metals maker Sterlite firmed 5.2% while leading aluminium producer Hindalco Industries added 3%.

Outsourcers, which get more than half their revenue from the United States, fell as the rupee shot up to its highest in more than a year taking its gains to over 11 percent against the dollar from a record low in March.