Sensex closes flat before Q3 results

BSE index rose 10.77 points, to 16,175.86, while NSE index ended 0.24 per cent higher at 4,860.95.

The Sensex closed little changed in cautious and choppy trading ahead of industrial output data due on Wednesday and quarterly results that are expected to show a slowdown in earnings growth.

Software services firms were among the major losers, led by Infosys, which fell 1.3 per cent, and larger rival Tata Consultancy Services, which dropped 2.4 per cent.
 

CHOPPY TRADE On the Bombay Stock Exchange
Top gainers & losers
	Jan, 11	% Chg*
Top 5 gainers
Hindalco	130.00	5.69
Sterlite Ind	100.50	4.85
DLF	190.95	3.41
Tata Steel	382.50	2.88
Hero Motocorp	1809.20	1.97
Top 5 losers
TCS	1137.15	-2.54
Jindal Steel	488.40	-2.16
Mah & Mah	678.80	-1.60
Bharti Airtel	325.55	-1.54
Cipla	340.00	-1.53

Infosys usually sets the tone for corporate earnings. It is expected to report a 30 per cent rise in December quarter profit tomorrow, but the market will be focusing on any revision in its forecast for the year ending March 31.

India’s showcase $76-billion software services sector, which gets most of its revenue from abroad, is expected to benefit from the rupee’s depreciation but the optimism is tempered by the uncertain outlook for the world’s developed eco-nomies.

“Everybody is playing cautious. They are waiting for industrial output data and corporate results,” said R K Gupta, managing director at Taurus Mutual Fund.

The 30-share BSE index rose 0.07 per cent, or 10.77 points, to 16,175.86, with 16 of its components rising. The index fell almost 25 per cent in 2011.

Retailers rallied a day after the government formally eliminated restrictions on foreign investment in the single-brand retail sector, raising hopes that rules for multi-brand retail would also be liberalised soon.

“This is probably an indication that government is finally moving on the policy front. This is quite positive for the broader market,” said D D Sharma, CEO at Risk Capital Adviser. Pantaloon Retail, which has been in tie-up talks with foreign retailers, rose 4.4 per cent, while departmental store chain Shoppers Stop gained 5.1 per cent.

Energy major Reliance Industries rose 1.6 per cent, while ICICI Bank and top lender State Bank of India rose 0.7 and 1.4 per cent respectively.

Utility vehicle maker Mahindra and Mahindra fell 1.3 per cent, while tobacco-to-leisure company ITC lost 0.9 per cent.

“It’s a day of consolidation for the market after the sharp rally yesterday. There is some profit-taking,” Sharma said.

The 50-share NSE index ended 0.2 per cent higher at 4,860.95. In the broader market, there were nearly 2.5 gainers for every loser on volume of 798 million shares.

STOCKS THAT MOVED 
Amtek India rose as much as 5.2 per cent after the auto parts maker reported a 34.4 per cent jump in December quarter profit. The shares closed up 1.23 per cent, at Rs 99.05.

Suzlon Energy Ltd rose 4.33 per cent to Rs 20.50 after it said its Brazilian unit got an order to set up, run and maintain a 24 Mw wind power project.

Reliance Infrastructure rose as much as 3.4 per cent on news that the company had completed the Rs 600, crore, 90 km Trichy-Dindigul road widening project in Tamil Nadu and that toll collections would start from on Wednesday. Its shares ended up 1.4 per cent at Rs 404.60.