Authorities in India seem more focused on whether to tighten monetary policy to rein in inflation at the risk of hurting an incipient recovery, ahead of the central bank's scheduled policy review on January 29. The 30-share BSE index eased 0.07 percent, or 11.57 points, to 17,474.49, its lowest close in over a week. Seventeen of its components declined.
"Stocks will stay in the consolidation mode for now. Investors will churn their portfolio, depending on the earnings," said Vaibhav Sanghavi, director of Ambit Capital. No 3 outsourcer Wipro Ltd underscored the sector's recovery with an upbeat outlook and forecast-beating quarterly profit, as a global recovery boosts demand from key financial clients.
But its shares, valued at about $24 billion, closed down 1.6 percent at 725.40 rupees after initially rising 2.1 percent to 753 rupees, its highest level since April 2000. State-run Oil & Natural Gas Corp, the country's largest oil producer, extended losses for the fourth day and closed 2.9 percent lower at 1,163.05 rupees.
Reliance Industries, which has the highest weight on the main index, dropped 0.7 percent to 1,077.75 rupees. Top mobile operator Bharti Airtel climbed 3.4 percent to 330.90 rupees, while rival Reliance Communications rose 0.2 percent to 186.85 rupees.
Housing Development Finance Corp climbed 0.6 percent to 2,524.10 rupees, as the mortgage lender said its December quarter net profit rose 23 percent. In the broader market, losers outpaced gainers in a ratio of 1.4:1 on volume of 528 million shares, much lower than last week's daily average of 651 million shares. The 50-share NSE index dropped 0.1 percent to 5,221.70.