By Ashutosh Joshi
MUMBAI--Indian shares were a little weaker in the early session
on Thursday in line with declines in most Asian markets.
Cement makers Ambuja Cements and ACC fell heavily following
parent Holcim's decision to restructure its Indian operations.
The deal is negative for minority shareholders and doesn't help
the companies' earnings, traders said. They expect both stocks to
remain under pressure for a few sessions. Ambuja Cements was down
13.3% to 165.60 rupees while ACC was down 3.8% to 1184.50
rupees.
To offset sluggish growth in the building sector and save up to
$150 million a year Holcim will give up the 50.01% it holds in ACC
to Ambuja. In return the Zurich-based company will increase its
stake in Ambuja to 61.39% from 50.55% and receive $600 million in
cash from Ambuja.
At 0425 GMT the Bombay Stock Exchange S&P Sensex was 33.16
points, or 0.2%, lower at 20057.52. The National Stock Exchange
Nifty index was down 16.30 points, or 0.3%, at 5974.20.
Cigarette maker ITC fell 0.9% at 372.65 rupees mainly on profit
taking.
Hero MotoCorp gained 4.2% to 1831.05 rupees. The company on
Wednesday posted its fourth straight quarterly net-profit decline
but reported better-than-expected operating margins.
The rupee currency was weaker against the U.S. dollar which
traded at 59.26 rupees compared with 59.13 late on Wednesday in
Asia.
Write to Ashutosh Joshi at ashutosh.joshi@dowjones.com
