Indian shares erase early losses; IT stocks sustain pressure
09/11/2018 06:22
* NSE index up 0.16 pct, BSE index up 0.12 pct
* Asian Paints, Axis Bank top boosts
* Large-cap IT weighs
By Chris Thomas
Nov 9 (Reuters) - Indian shares recovered from early losses
to trade slightly higher on Friday, with gains in the financial
and consumer sectors eclipsing losses in large-cap IT stocks.
The broader NSE index .NSEI , which fell as much as 0.5
percent in early trade, was up 0.16 percent at 10,615.8 as of
0545 GMT. The benchmark BSE index .BSESN was 0.12 percent
higher at 35,280.59.
The indexes were set to finish the trading week, truncated
due to local holidays, about half a percent higher.
In broader Asia, stocks pulled back from one-month high as
the U.S. Federal Reserve appeared poised to deliver another
interest rate hike next month. MKTS/GLOB
"We don't have much of a positivity from Asia...volatility
is also slightly up, being the last working day of the week,"
said Anand James, chief market strategist at Geojit Financial
Services.
Indian shares appeared to shrug off weak leads from its
neighbours, led by Asian Paints Ltd's ASPN.NS stock that rose
as much as 4.6 percent to a six-week high. The stock was also
the top percentage gainer and contributor to the NSE index.
Private-sector lender Axis Bank Ltd AXBK.NS climbed 2.4
percent, while smaller rival Yes Bank Ltd YESB.NS rose as much
as 4.4 percent in its ninth straight session of gains.
Auto stocks also saw good buying interest. Shares of Maruti
Suzuki India Ltd MRTI.NS rose 2.6 percent, while those of Tata
Motors Ltd TAMO.NS climbed 3 percent to a one-month high.
Industrial gases company Linde India Ltd LIND.NS surged as
much as 19 percent after its biggest shareholder said it
intended to buy the rest of the company. urn:newsml:reuters.com:*:nL4N1XK24H
Telecom equipment manufacturer ITI Ltd ITEL.NS jumped 9.4
percent after the Indian government said it will continue to
force three state-owned telecom companies to buy 30 percent of
their equipment orders from ITI. urn:newsml:reuters.com:*:nL4N1XK1WJ
The pharmaceutical sector got a boost from a weaker rupee
INR= that hit a day's low of 72.8225 against the dollar.
The Nifty Pharma index .NIPHARM rose as much as 1.5
percent, lifted by a 3.4 percent jump in Sun Pharmaceutical
Industries Ltd SUN.NS .
However, the weak rupee failed to cheer large-cap IT stocks,
as shares of Infosys Ltd INFY.NS and Tata Consultancy Services
Ltd TCS.NS fell 2.4 percent and 1.6 percent, respectively.
Telecom major Bharti Airtel Ltd BRTI.NS was the biggest
percentage loser, with shares dropping as much as 5.7 percent
after rating agency Moody's on Thursday placed the company's
credit rating on review for downgrade citing low levels of
profitability and expectations of weak cash flow. urn:newsml:reuters.com:*:nL4N1XK1YU
(Reporting by Chris Thomas in Bengaluru; Editing by Rashmi
Aich)
((chris.thomas@thomsonreuters.com; +91-80-6749-8695; Reuters
Messaging: chris.thomas.thomsonreuters.com@reuters.net))