* BSE end down 0.07 pct; NSE ends 0.03 pct up
* Traders wait fresh triggers on reform
* Shares in public banks up on capital infusion hopes
By Manoj Dharra
MUMBAI, Dec 10 Indian shares recovered from the
day's low to end nearly flat on Monday, led by a rally in
state-run banks such as Punjab National Bank on hopes
that legislation on banking sector reforms would be passed
during the current session of parliament.
Traders said the market was now waiting for fresh cues on
reforms from the government to revive the investment cycle to
India's parliament is expected to amend the banking laws
that includes raising the limit on shareholders' voting rights
in public and private sector banks, a step seen largely positive
towards the government's reform drive.
Rate-sensitive sectors such as banks, real estate and
automobile will remain in focus this week as the outcome of two
key data points, industrial output and wholesale price index,
will set the tone for the central bank's policy meeting on Dec.
"Markets would continue to find FII buying at lower levels
due to support from reform measures, cut in interest rate and
earnings," said Vivek Mahajan, head of research, Aditya Birla
The benchmark BSE index fell 0.07 percent, or 14.41
points, to end at 19,409.69.
The broader NSE index rose 0.03 percent, or 1.5
points, to end at 5,908.90.
On Monday bank stocks were boosted on expectations of an
increase in voting rights and cheap valuations in some banks,
If approved, the cap on voting rights for investors in
private sector banks such as HDFC Bank Ltd and ICICI
Bank Ltd would rise to 26 percent from 10 percent, and
to 10 percent for government banks such as State Bank of India
from just 1 percent now.
Punjab National Bank rose 2.3 percent to 839.7 rupees, Bank
of India gained 4.1 percent to 305 rupees, while Bank
of Baroda ended 3.8 percent higher at 828.15 rupees.
State-run banks such as Union Bank of India and
Oriental Bank of Commerce gained on capital infusion
hopes. Union Bank rose 3.9 percent, while Oriental Bank added
Likely candidates for banking licences rose as traders were
expecting the banking bill to be passed which the Reserve Bank
of India said was a pre-condition to invite new banking
licences. Reliance Capital Ltd gained 2.8 percent, L&T
Finance Holdings Ltd rose 2.7 percent while Mahindra &
Mahindra Financial Services Ltd ended up 5.6 percent.
India's No.3 software services provider Wipro Ltd
gained 0.5 percent after the company said it would buy L.D.
Waxson Group, a Singapore-based consumer goods company, in an
all-cash deal worth about $144 million.
Dealers also attributed gains to reports in the Economic
Times newspaper that Wipro has bagged a $200-million (10.9
billion rupees) technology service contract in Europe, citing a
person with direct knowledge of the negotiations.
Leading the fall, Reliance Industries edged down
0.75 percent on profit-taking after gaining 5.15 percent this
month as of Friday's close, while Tata Consultancy Services
fell 2.1 percent on outlook concerns.
Cairn India Ltd fell 2 percent after Goldman Sachs
downgraded the stock to 'neutral' from 'buy', citing
expectations of flat to declining earnings growth, based on its
medium-term outlook of gradual moderation in oil prices.
The investment bank also removed the stock from its Asia
Pacific buy list.
Shares in Uttar Pradesh-based sugar companies fell after the
state raised the price at which sugar mills buy the new season
crop by up to 16 per cent to 290 rupees per 100 kg.
Morgan Stanley said in a note the hike in the price of cane
in the current sugar season by 2,920 rupees per tonne is much
higher than expectations of a 2,820 rupees per tonne hike.
Shares of Balrampur Chini fell 9.5 percent and
Bajaj Hindusthan ended 1.4 percent lower, while Shree
Renuka Sugars was down 2.5 percent.
For additional stocks on the move double click
FACTORS TO WATCH
* Euro dips on Italian politics, may slip further
* Oil climbs above $107 on strong Chinese demand
* Shares fall as Monti sparks Italy uncertainty
* Foreign institutional investor flows
* For closing rates of Indian ADRs
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........ Japan....... S.Korea...
S.E. Asia....... Hong Kong... Taiwan....
Australia/NZ.... India....... China.....
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
Indian Data Watch Asia earnings diary
U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
For top Asian company news, double click on:
U.S. company news European company news
Forex news Global Economy news
Technology news Telecoms news
(Editing by Anand Basu)