By Nupur Acharya
MUMBAI--Indian shares ended a tad higher Thursday ahead of the
release of consumer price inflation for May and factory output data
for April.
Economists are expecting improvement in both economic
indicators.
The S&P BSE Sensex index ended up 0.40% at 25576.21 points,
led by gains in sectors including metals, financial services and
energy. The National Stock Exchange's 50-stock Nifty index closed
up 0.30% at 7649.90 points.
Among top gainers were aluminium manufacturer Hindalco
Industries Ltd. (500440.BY), which rose 3.78% to 168.75 rupees, Sun
Pharmaceutical Industries Ltd. (524715.BY), up 2.80% at 630.70
rupees, HDFC Bank Ltd. (500180.BY), up 2.62% 978.60 rupees and its
parent, Housing Development Finance Corp. (500010.BY), which ended
the session up 2.37% at 839.90 rupees.
India's second-largest software maker by sales Infosys Ltd.
(500209.BY) saw a lot of action after it named former technology
chief of SAP AG, Vishal Sikka, as its new chief executive and
managing director and unveiled a management restructuring. This
comes at a time when Infosys is going through a tough phase,
falling behind competitors and facing an exodus of its senior
executives.
The stock jumped nearly 3% in early trade but pared all gains on
profit-booking to close down 0.38% at 3166.60 rupees.
Market participants seem to be basing their decisions on a
longer-term outlook as it will be sometime before the efforts of
the new government start to make an impact, said Hatim Broachwala,
senior research analyst with Karvy Stock Broking Ltd. With all eyes
on the budget in early July, there is limited upside but also no
major negative surprises, he added.
India's consumer price inflation likely slowed to 8.40% in May
from 8.59% the month before, according to a Wall Street Journal
poll of 19 economists.
Also, industrial output likely improved for the first time in
three months in April, helped by rising power generation.
Industrial production--which includes output of factories, mines
and utilities companies--likely grew 1.9% from a year earlier, a
WSJ poll showed. It had shrunk 0.5% in March and contracted 1.8% in
February. Both data releases are due 1200 GMT Thursday.
Write to Nupur Acharya at nupur.acharya@wsj.com
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