|
Tuesday December 30, 01:20 PM
|
|
BSE Sensex flat, look for stimulus plan, rates
MUMBAI (Reuters) – The BSE Sensex (^BSESN : 16632.01 -222.92
) trimmed early gains on Tuesday as investors took profits on blue-chips after Monday's small rise, but banks got a boost from speculation about a
possible economic stimulus package and cut in interest rates.
India's fourth-largest software exporter Satyam Computer Services (SATYAM.BO : 90.55 -2.2) rose as much as 5.8 percent on a newspaper report that private equity players were eyeing a stake in the
company and market talk of possible management changes.
The benchmark 30-share BSE index was almost flat on the day at 9,537.10 points by 0713 GMT, after climbing 1.2 percent earlier. Half its components were in positive territory.
India's central bank governor met the prime minister on Monday ahead of next month's interest rate review and a senior government official said a fiscal stimulus package was likely
soon to give a lift to slowing economic growth.
"The hope of stimulus package is helping and also interest rate cut expectations. International markets have also aided the sentiment," said Ambareesh Baliga, vice-president of Karvy Stock
Broking.
Asian shares advanced for the second day in a row led by resource firms. Japan's Nikkei average closed up 1.3 percent on its last trading day of the year, but shed 42 percent in 2008 as
a whole.
India's benchmark index has fallen about 53 percent so far this year.
Satyam shares stood at 155.80 rupees, up 5.1 percent, after the Economic Times cited unnamed market participants as saying institutional investors had approached IT and private equity firms for a stake sale.
Its shares are down almost a third since a botched attempt two weeks ago to buy two firms in which management held stakes.
"Satyam is a good bet for short-term trade with reports PE players are looking at a stake in the company," said Amitabh Chakraborty, president of equities at Religare Securities.
Banks led the market, with the sector index up 0.5 percent on talk of a possible a cut in official interest rates.
The largest private sector bank, ICICI Bank (ICICIBANK.NS : 850.9 -14.6), was up 0.5 percent at 446.80 rupees and HDFC Bank rose 0.8 percent. State-run State Bank of India (SBIN.NS : 2242.9 -11.75) was down 0.4 percent.
In the broader market, 1,331 gainers led 827 losers on high volume of 185 million shares.
The 50-share NSE (^NSEI : 4941.75 -63.8) index was up 0.3 percent at 2,913.
STOCKS ON THE MOVE
* Navneet Publications, up 11.37 percent at 45.55 rupees, after 7.2 million shares or 7.6 percent of outstanding equity changed hands in a block deal at 41 rupees on BSE.
* Rolta India, up 4.95 percent at 116.50 rupees after the software services firm said it has acquired U.S.-based Piocon Technologies.
* Sugar maker Bajaj (BAJAJAUTO.NS : 2101.05 0) Hindusthan Ltd, up 3.92 percent after two block deals for 39.9 million shares, or 28.2 percent of equity.
MAIN TOP THREE BY VOLUME
* Bajaj Hindusthan on 42.5 million shares
* Unitech on 14 million shares
* Satyam Computer on 9 million shares
(For Quotes and Interactive Charts of BSE Sensex click http://in.reuters.com/money/quotes/chart?symbol=.BSESN)
