India Shares Tad Lower - Wall Street Journal (India)

By ASHUTOSH JOSHI MUMBAI—Indian shares traded slightly lower in the morning session Friday after hitting their highest in nearly 29 months Thursday, in a rally spurred by the possibility of the central bank lowering its policy interest rate. The Bombay Stock Exchange's S&P BSE Sensex at 0445 GMT was down 0.1% at 20228.12 points. The National Stock Exchange's Nifty index was down 0.1% at 6161.10 points. J.M. Financial, a mid-sized financial services company which isn't a part of the Sensex or Nifty, gained 13.4% to 26.70 rupees, after it said late Thursday that former Citigroup Chief Executive Vikram Pandit will buy a 1.5% stake. It also said a company led by Mr. Pandit will invest $100 million in its nonbank lending firm. J.M. Financial also said it received board approval to apply for a banking license and that it would nominate Mr. Pandit as the proposed bank's nonexecutive chairman. Shares have been rallying for the past month on expectations that rate cuts and the government's pro-reform programs will boost economic growth. HDFC Bank fell 1.3% to 713.40 rupees, after making strong gains in earlier in the session. Mortgage lender Housing Development Finance was also down 0.8% at 900.95 rupees. Information technology stocks recovered from minor losses early on. Infosys was the top Sensex gainer, rising 1.2% to 2,360.00 rupees, followed by Tata Consultancy which rose 1.0% to 1,468.00 rupees. Cigarette maker ITC, which will report January-March earnings later in the day, was up 0.6% at 339.50 rupees. Indian government bonds extended the sharp gains seen over the past couple of weeks, with all eyes on the auction of a new 10-year benchmark later in the day. Around 0415 GMT, the current benchmark—the 8.15% bond due 2022—traded at 7.34% compared with 7.39% at close Thursday. In the currency market, the U.S. dollar hovered close to 55.00 rupees on consistent buying by oil importers. It was at 54.97 rupees, compared with 54.78 rupees in late Asian trade Thursday. --Khushita Vasant contributed to this article. via Top Stories - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGPBtqxONYb1ULjzVZbvOgvkrXq3Q&url=http://online.wsj.com/article/SB10001424127887323582904578488161847451152.html

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