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US rate cut hopes help Indian shares edge up
Indian shares climbed 0.4 per cent yesterday in choppy trade, with investors unsure whether an expected US rate cut would halt a foreign sell-off and revive inflows.
- Reuters
- Published: 23:43 October 29, 2008
Mumbai: Indian shares climbed 0.4 per cent yesterday in choppy trade, with investors unsure whether an expected US rate cut would halt a foreign sell-off and revive inflows.
Traders were also unwilling to build long positions ahead of a local holiday today, and participants mostly rolled over their monthly derivatives holdings belying expectations for short covering.
"The usual fireworks associated with futures expiry were missing. Investors are disinterested, there is no frenzy to buy or hold on at these levels," said Rajesh Jain, chief executive at Pranav Securities.
Top utility vehicle maker Mahindra & Mahindra accelerated 8.3 per cent to Rs302.50 (Dh25.21) after posting a lower-than-expected 20.6 per cent drop in quarterly profit. The stock had rallied 12.7 per cent on Tuesday, but is down 65 per cent this year.
Bigger rival Tata Motors rose 1.5 per cent to Rs157.45 ahead of its quarterly earnings tomorrow. A Reuters poll of analysts expected a 37 per cent fall in net profit to Rs3.3 billion.
Aluminium and copper maker Hindalco Industries rose 18.2 per cent to Rs53.15, its sharpest daily gain in 16 years, ahead of its quarterly results. The stock is still down 46 per cent in October.
The 30-share benchmark index rose 36.43 points to 9,044.51, its best close this week. It opened 3.2 per cent higher but slipped as much as 1.3 per cent during trade.
Seventeen index components rose, while the broader market losers led gainers 1,329 to 1,105 on volume of 240 million shares.
"There is lack of conviction. Investors need to wait till Friday or Monday to get a sense of a clear direction," said R.K. Gupta, managing director at Taurus Mutual Fund.
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