* Reliance Inds dips as court starts case hearing
* Metals shine on higher base metal prices, good outlook
(Updates to close)
By Ami Shah
MUMBAI, Oct 20 (Reuters) - Indian shares closed 0.6 percent
lower in seesaw trade on Tuesday, pulled down by Reliance
Industries (RELI.BO) on investor nervousness over the start of
a court hearing in the energy giant's dispute with Reliance
Natural Resources (RENR.BO)
The Supreme Court started hearing arguments in the case
between Reliance Industries led by billionaire Mukesh Ambani,
and Reliance Natural Resources, led by his younger brother
Anil, over a deal to sell gas to the latter at below-market
rates as per a family settlement. [ID:nBOM419984].
Reliance Industries, which has the highest weight on
Sensex, shed 1.8 percent, its biggest single-day fall in more
than a month, to 2,183.85 rupees, while Anil Ambani-led
Reliance Natural Resources rose 1.2 percent to 87.90 rupees.
The 30-share main index .BSESN closed 0.59 percent or 103
points lower at 17,223.01 points, with 18 components declining.
Strong overseas cues drove it to as much as 17,457.26 in early
deals, its highest level since May 2008.
"Fresh new triggers are absent with valuations peaking for
sectors like banking and capital goods," said Deven Choksey,
managing director and CEO at K. R. Choksey Shares.
"Clarity over issues like Reliance court case should give a
direction to the market," added Choksey.
An inflow of $13.6 billion from foreign funds have powered
a rally of around 78 percent in the benchmark so far this year.
"Some amount of profit booking may happen in sessions to
come. But downside risks are not very high in the near term
considering the strong global cues," said R.K. Gupta, managing
director of Taurus Mutual Fund.
Indian shares had traded in an one-hour session on
Saturday, held every year on an auspicious period of Diwali,
the Hindu festival of lights. The market was closed Monday for
a public holiday.
Metals companies led the gainers amongst Sensex stocks, on
good long-term outlook and as base metals prices stayed firm.
The world's eigth-largest steel maker Tata Steel (TISC.BO)
firmed 2.1 percent to 575.25 rupees, while leading aluminium
producer Hindalco Industries (HALC.BO) closed 4.7 percent
higher at 141.30, its best close in 16 months.
"Tata Steel and Hindalco look good at current levels due
to better outlook for their respective units Corus and
Novelis," said Eric Martins, senior research analyst at
Systematix Shares.
"Increase in Corus' operating capacity and likely
turnaround at Novelis are key positives for these stocks,"
added Martins.
State-run power producer NTPC (NTPC.BO) rose as much as
4.25 percent in early deals, after the government approved a 5
percent stake sale in the company on Monday.[ID:nDEL348414]
The stock closed up 1 percent at 216.05 rupees.
Leading software services exporter Tata Consultancy (TCS)
(TCS.BO) rose 2.1 percent to 621.40 rupees, as investors
cheered a better-than-expected 29 percent rise in its September
quarter net profit. [ID:nBOM345538]
"BFSI (banking, financial services and insurance) which
took Indian tech into the downturn has been the first to revive
and we believe companies with high exposure to the sector
namely Cognizant, TCS and Infosys (INFY.BO) should grow ahead
of the rest," CLSA said in a note on Sunday.
In the broader market, losers outnumbered gainers in the
ratio of 1.1:1, in a relatively moderate volume of 484 million
shares.
The 50-share NSE index closed 0.53 percent lower at
5,114.45.
World stocks hit a new 12-month high on Tuesday, powered by
strong results from Apple Inc (AAPL.O) and Texas Instruments
(TXN.N) and helping to push the dollar to a new 14-month low
against a basket of currencies. [ID:nLK344127]
STOCKS THAT MOVED
* Tyre maker Apollo Tyres (APLO.BO) rose 5.1 percent to
54.55 rupees, its highest close in 21 months, after its
July-September net profit soared, and it raised its 2009/10
India sales outlook, citing better demand for vehicles and
transportation. [ID:nDEL527184]
* Diverisified firm Prakash Industries (PRKI.BO) rose 1.2
percent to 154.50 rupees, after it said its September quarter
net profit rose 42 percent. [ID:nBMB008716]
MAIN TOP 3 BY VOLUME
* Reliance Natural Resources on 15.1 million shares.
* Ispat Industries (ISPT.BO) on 10 million shares
* GVK Power (GVKP.BO) on 9.6 million shares
FACTORS TO WATCH
* For technical analysis double click on
www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Dollar hits 14-mth low vs basket, euro nears $1.50
[FRX/]
* Oil retreats below $80 on supply caution
[O/R]
* World stocks hit new 12-month high; dlr weak
[MKTS/GLOB]
* U.S. stock futures signal gains as Apple, TI please
[.N]
* For closing rates of Indian ADRs
INADR
(Editing by Jarshad Kakkrakandy)
