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Indian index falls on lack of conviction
Indian shares fell 0.5 per cent on Tuesday to their lowest close in nearly six weeks, but Reliance Communications rose on hopes the mobile operator would not overpay for a deal with South Africa's MTN.
- Reuters
- Published: 00:04 May 28, 2008
Bangalore : Indian shares fell 0.5 per cent on Tuesday to their lowest close in nearly six weeks, but Reliance Communications rose on hopes the mobile operator would not overpay for a deal with South Africa's MTN.
Traders said the market lacked conviction after rising as much as one per cent during trade and investors were quick to cut positions before the close.
"There is lack of institutional interest in the market and all this uncertainty related to inflation and oil price hike is forcing investors to stay away from the markets," said Gajendra Nagpal, chief executive of Unicon Financials.
Annual inflation topped eight per cent in March for the first time in three years, revised data showed on Friday, and analysts said a possible rise in government-set retail fuel prices could push it closer to double digits.
India will take a decision soon on whether to raise petrol and diesel prices, a senior oil ministry official said on Tuesday, as it struggles to ease losses at state oil firms without adding to inflation or alienating voters.
No 2 mobile operator Reliance Communications rose 1.6 per cent to Rs551.75 on hopes it and MTN Group may swap shares or take big stakes in a new company, without stretching its balance sheet.
Pakistan: Karachi stocks up
Pakistan's benchmark index rose for the first time in four days, led by energy stocks, after global crude oil prices traded near record levels.
The Karachi Stock Exchange 100 Index rose 237.47 points, or 1.9 per cent, to 12,822.25 at the 2.15pm local-time close.
- Bloomberg
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