Sensex seesaws as Mahindra slides while Jaiprakash gains

Mumbai : Indian stocks fluctuated yesterday. Mahindra & Mahindra, a vehicle maker, fell on expectations policy makers will take steps to curb inflation. Jaiprakash Associates, a dam builder, gained amid signs the economy is expanding.

Mahindra, the nation's biggest maker of sport-utility vehicles, fell 2.3 per cent. India's food-price inflation rose 16.3 per cent, the government's weekly report showed yesterday. While the slowest pace in four months, it coincides with an increase in manufactured-product costs by the most in 16 months in February. Jaiprakash gained 1.7 per cent.

"We are bullish on the long term, but it's not necessary for investors to buy stocks right now," said Ambareesh Baliga, who advises wealthy clients at Karvy Stock Broking Limited in Mumbai. "We see interest rates moving up, which doesn't augur well for the markets."

Baliga, who recommends selling automotive, sugar and real estate stocks, declined to say how much money the firm has in assets.

The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 27.10, or 0.2 per cent, to 17,462.98 at 12:49pm in Mumbai after swinging between gains and losses at least 10 times.

The gauge is close to a two-month high after yesterday erasing year- to-date losses.

The S&P CNX Nifty Index on the National Stock Exchange retreated 0.1 per cent to 5,227.95. The BSE 200 Index was little changed at 2,188.15.

Mahindra fell 2.3 per cent to Rs1,097.3 (Dh88.75). Jaiprakash rose 1.7 per cent to Rs150.85.

An index measuring wholesale prices of lentils, rice, vegetables and other food articles compiled by the commerce ministry rose 16.3 per cent in the week ended March 6 from a year earlier after a 17.81 per cent gain the previous week, according to a statement in New Delhi yesterday.

Overseas investors bought a net 13.5 billion rupees ($296.8 million) of Indian stocks on March 15 and 16, taking their total purchases of the equities this year to Rs135.7 billion, according to the nation's market regulator.