Indian Shares Higher On Asian Cues; Inflation Eyed - InvestingChannel

Indian Shares Higher On Asian Cues; Inflation Eyed

Indian shares rose on Monday, tracking firm Asian cues after Chicago Fed President Charles Evans said the U.S. central bank should keep policy accommodative to boost employment while lawmakers take steps to cut back spending. Closer home, investors await WPI inflation numbers and Q3 results from TCS for directional cues.

According to analysts, inflation probably rose an annual 7.4 percent in December, faster than the 7.24 percent rise in the previous month.

The benchmark BSE Sensex is currently up 103 points or 0.52 percent at 19.767, while the broader Nifty index is at 5,972, up 21 points or 0.35 percent from its previous close. IT, consumer durable and oil/gas stocks are gaining ground, but auto, metal, power and healthcare stocks are losing ground.

Infosys is climbing 4.3 percent on brokerage upgrades, extending Friday’s rally after posting upbeat Q3 earnings results. TCS is up 2.5 percent ahead of its quarterly results today and Wipro is moving up 0.7 percent. Petronet LNG is up marginally as it posted a 7 percent rise in quarterly net profit.

Telecom stocks are subdued after the company asked mobile operators to pay their first installment of Rs. 8,115.68 crore of one-time spectrum fee by January 15. Bharti Airtel is down marginally, Idea Cellular is edging down 0.2 percent and Reliance Communication is losing 0.9 percent.

State-run banks are declining amid reports the government plans to set up a financial holding company for recapitalizing public sector banks. SBI and PNB are down about half a percent each, Bank of Baroda is declining 0.6 percent and Indian Bank is down 0.3 percent.

Private sector lender HDFC Bank is little changed, ICICI Bank is moving up 0.6 percent and Axis Bank is up 0.3 percent.

Crompton Greaves is down 0.3 percent after it entered into an agreement for acquiring the Compact Fluorescent Lamps business of Himachal-Pradesh based Karma Industries.

Jaiprakash Power Ventures is plunging 6.5 percent after its board approved a proposal to raise funds up to Rs.3.500 crore through various options. PVR is declining 1.7 percent after its board approved a preferential share issue at Rs.245 per share.

by RTT Staff Writer

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