Business | Markets
Telecoms lift Indian index off early lows
Indian shares pared sharp early losses and ended down 0.3 per cent on Tuesday, helped by lower oil prices and positive European markets, but investors were wary about the outlook on global growth concerns.
- Reuters
- Published: 22:28 September 9, 2008
New Delhi: Indian shares pared sharp early losses and ended down 0.3 per cent on Tuesday, helped by lower oil prices and positive European markets, but investors were wary about the outlook on global growth concerns.
Telecoms firms Bharti Airtel and Reliance Communications led the recovery as the fast-growing sector got back into favour after many weeks in the wilderness.
"The market is obviously looking for new ideas and sectors like telecoms, which are detached from the normal economy are finding favour as a safer play," said Gajendra Nagpal, CEO at Unicon Financial.
The 30-share main BSE index closed 44.21 points lower at 14,900.76, but 10 components gained ground. The index had fallen as much as 1.5 per cent before recovering.
"We were pressured by Asia in the morning but positive opening in Europe boosted sentiment," Nagpal said.
Index heavyweight Reliance Industries closed 0.5 per cent up at Rs2,142.85 after falling 2.2 per cent during trade.
Traders said a drop in oil prices to a new five-month low below $105 a barrel underpinned the stock market.
Domestic inflation jumped to double digits after a spurt in prices of oil, which hit a record above $147 in mid-July.
"If global markets remain slightly positive and oil falls further, there is a chance we can see a rally from here," Nagpal said. The BSE index is down more than 26 per cent this year.
Inflation has been a worry for the market after the central hiked interest rates to seven-highs to calm price pressures, triggering a slowdown in consumer spending and moderating economic growth.
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