Monday, November 29, 1999

BSE Sensex choppy; banks down, telecoms up

News posted by www.newsinfoline.com

MUMBAI (Reuters) The BSE Sensex was choppy with a negative bias on Tuesday as euro zone debt woes continued to hobble investors in the region, but traders said they expected the market to perk up on strong domestic growth.Export-focused outsourcers climbed on hopes their limited exposure to the debt-ridden countries in Europe would not seriously dent their outlook, traders said.However, financials eased on the shaky sentiment in the region."I think the Asian markets will rise above the European crisis," said Gajendra Nagpal, CEO of Unicon Financial. "The euro zone woes are already factored in the price of Asian stocks and investors know the Asia story is on."Foreign funds have pulled out $665 million from Indian equities so far this month, sending the benchmark nearly 4 percent down.Infosys Technologies and Wipro were up 0.3 percent and 1.7 percent respectively after BNP Paribas Securities said on Monday only a fraction of 13-57 percent revenue that large Indian IT companies get from Europe came fromthe debt-affected countries there."We are therefore leaving our forecasts and our positive sector view unchanged, but will closely watch the developments in Europe," BNP Paribas said in a note.ICICI Bank and HDFC Bank shed 1.8 percent and 1.5 percent respectively, while mortgage lender Housing Development Finance Corp was down 1.1 percent. But top lender State Bank of India edged 0.4 percent higher.Energy giant Reliance Industries, which has the highest weight on the Sensex, was down 0.3 percent at 1,013.60 rupees.Leading mobile operators Bharti Airtel and Reliance Communications, which have been battered by a call tariff war, climbed 0.7 percent and 0.8 percent respectively.The stocks, the only two in the benchmark index that declined in 2009, are down 18.3 percent and 17.5 percent so far this year.The telecom sector has been hammered by a tariff war, rising competition, high bids for third-generation licences and recent recommendation from the regulator over one-time spectrum fee.In the broader market, gainers led losers in a ratio of 1.7:1 on volume of 115 million shares.The 50-share NSE index was down 0.4 percent at 5,038.60.STOCKS ON THE MOVE* Larsen & Toubro rose 2.3 percent to 1,642.55 rupees, extending gains after the engineering conglomerate posted better-than-expected quarterly results on Monday and said it expected 20 percent revenue growth this year due to a pick-up in orders.* Metals stocks such as Sterlite Industries, Hindalco and Tata Steel were down between 1.2 percent and 1.7 percent as the outlook for metal prices was uncertain.* Venus Remedies rose 7.8 percent to 275.05 rupees, as the drug maker said it secured an Indian patent for its once-a-day painkiller Aceclofenac injection.MAIN TOP 3 BY VOLUME* Bank of Rajasthan on 6.3 million shares* Reliance Natural Resources on 2.1 million shares* Suzlon Energy on 1.5 million shares(Reporting by Ami Shah; Editing by Ranjit Gangadharan)(For more business news on Reuters Money visit http://www.reutersmoney.in)
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