Profit taking in technology shares holds back advance
By Nick Godt, MarketWatch
MUMBAI (MarketWatch) — Indian shares rose for a second session on Wednesday, as crude-oil prices continued to pull back from 29-month highs, easing inflation concerns and lifting pressure on some oil-sector stocks and financial firms.
Also lifting sentiment in India, the ruling Congress party reached a deal with the Dravida Munnetra Kazhagam (DMK) party, ending a crisis that threatened to slow planned reforms by the coalition government.
Technology and financial shares, big gainers in the previous session, succumbed to profit taking and kept the advance in check in the broad market.
The Sensex (XX:SENSEX 18,470, +30.30, +0.16%) rose 31.13 points to 18,470.64, with shares of auto makers Maruti Suzuki India Ltd. (IN:532500 1,266, +9.60, +0.76%) , Bajaj Auto Ltd. (IN:532977 1,418, +31.45, +2.27%) and Hero Honda Motors (IN:500182 1,533, +15.30, +1.01%) (IN:500182 1,533, +15.30, +1.01%) all seeing modest rises.
Heavyweight Reliance Industries (IN:500325 993.00, +8.60, +0.87%) rose 1%.
The firm may boost production of natural gas in the Krishna-Godavari basin off India’s east coast, according to a report Wednesday in the Wall Street Journal.
The S&P/CNX Nifty (XX:NIFTY 5,531, +10.20, +0.19%) gained 0.1% to 5,522.65.
Infosys’s billionaire chairman, N.R. Narayana Murthy, told Bloomberg that the firm is now on a constant hunt for acquisitions of tech firms that specialize in health care and government services.
With $3.6 billion, Infosys has the largest cash reserves of any Indian computer-services firm and almost twice that of Tata Consultancy Services Ltd. (IN:532540 1,125, +6.50, +0.58%) , its biggest rival.
