Indian shares eased slightly on Monday following last week’s rally amid weak European cues and caution ahead of January industrial production data due tomorrow and WPI inflation data due out on Thursday. The RBI ruled out any revision in its inflation goal last week, saying price stability was essential to help investors and consumers make informed choices and contribute to growth.
Given the past track record, the Indian economy will likely grow in the range of 7-8 per cent in the next 4-5 years, the Economic Times quoted Planning Commission deputy chairman Montek Singh Ahluwalia as saying while addressing a panel discussion in New Delhi. World Bank president Jim Kim, meanwhile, said he expected the Indian economy to grow over 6 percent during 2013-14.
The benchmark BSE Sensex ended the session down 37 points or 0.19 percent at 19,646, with 19 of its components retreating. The broader Nifty index fell by 3 points or 0.06 percent to 5,942.
IT stocks lost ground, weighed down by a stronger rupee after data showed India’s exports grew for a second straight month in February. Exports rose 4.25 percent year-on-year in the month to $26.3 billion, while imports rose 2.6 percent to $41.2 billion, leaving a trade deficit of $14.9 billion. TCS and Wipro fell about 1.5 percent each, while Infosys declined 0.8 percent.
Maruti Suzuki eased 0.7 percent and Tata Motors shed 0.8 percent after data released by industry body SIAM revealed domestic passenger car sales fell 25.71 percent to 1,58,513 units in February from the same month last year. Two-wheeler manufacturers Bajaj Auto and Hero MotoCorp lost 2-3 percent, while utility vehicles manufacturer Mahindra & Mahindra rose 1.3 percent.
Telecom stocks ended mostly higher after Sistema Shyam Teleservices emerged as the sole bidder for eight circles in the 2G spectrum auction for CDMA services. Tata Teleservices soared 5.5 percent, Reliance Communication rose 0.6 percent and Idea Cellular advanced 1.6 percent.
Reliance Power gained 0.7 percent as it commissioned its first unit of Sasan ultra mega power project in Madhya Pradesh. Drug makers Ranbaxy and Sun Pharma rose 1-2 percent on brokerage upgrades.
Larsen & Toubro closed up 1.1 percent, reversing early losses, after the engineering & construction giant issued a clarification saying the sanctions imposed by the World Bank will not have material impact on the company’s present or future operations.
Berger Paints rose 2.1 percent after the company said it will acquire the architectural operations of Sherwin Williams Paints India for an undisclosed sum through its wholly-owned subsidiary, Brushworks Paints.
Bosch added 0.7 percent after its employees called off a tool down strike at its Adugodi plant in Bangalore. Amtek Auto jumped 6.5 percent as it entered into an agreement to acquire NeumayerTekfor Group of Germany.
On the global front, other Asian markets turned in a mixed performance, as downbeat Chinese data and a one notch downgrade of Italy by Fitch tempered optimism concerning the U.S. economy. Fitch Ratings lowered Italy’s long-term foreign and local currency Issuer default ratings to ‘BBB+’ from ‘A-‘ with a warning of a further downgrade, citing the inconclusive result of last month’s national election, the ongoing recession and rising debt.
Japan’s Nikkei index rose half a percent, extending gains for the eighth straight session, after incoming governor Haruhiko Kuroda said the Bank of Japan’s efforts so far to exit deflation have not been sufficient and that he will take every measure possible to achieve the 2 percent inflation target.
He reiterated that BoJ’s current scale of asset purchases was not enough to beat deflation, triggering speculation he will consider adding more stimulus at his first policy board meeting on April 3-4.
European stocks fell from a 4 1/2-year high as investors digested Italy’s credit rating downgrade and China’s uneven economic recovery.
by RTT Staff Writer
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