“There is no conviction in the market,” said Jagannadham Thunuguntla, the head of equities at SMC Capitals Ltd. in New Delhi. “There is no positive trigger to take it higher. That’s why we are seeing this volatility.”

1. Indian Stocks Fluctuate; Infosys Declines, Bharti Advances
By Rajhkumar K Shaaw
Aug. 28 (Bloomberg) -- India’s benchmark stock index fluctuated. Infosys Technologies Ltd. fell
after Morgan Stanley cut its rating, while Bharti Airtel Ltd. rose on news the government aims to sell
licenses for high-speed mobile services.
Infosys, the No. 2 software exporter, dropped the most in a week. Morgan Stanley reduced its rating
to “underweight” from “equal-weight”. Bharti, the nation’s largest mobile-phone services provider,
was set for its highest close in three months after ministers said they would auction so-called 3G
permits.
“There is no conviction in the market,” said Jagannadham Thunuguntla, the head of equities at
SMC Capitals Ltd. in New Delhi. “There is no positive trigger to take it higher. That’s why we are
seeing this volatility.”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, rose 146.55, or 0.9 percent, to 15,927.62
at 2:48 p.m. in Mumbai. The measure swung between gains and losses at least eight times today. The
gauge has risen 0.6 percent this week and is set for a 1.5 percent monthly gain.
The S&P CNX Nifty Index on the National Stock Exchange rose 1 percent to 4,734.40. The BSE 200
Index rose 0.9 percent to 1,949.9.
Bharti leapt 5.4 percent to 438.9 rupees, the second- biggest percentage gainer on the 30-member
benchmark. Reliance Communications added 0.1 percent to 263.35 rupees.
Ministers’ decision to issue permits to cover the 22 phone-service zones of the world’s second-largest
mobile market by users ends more than nine-month deadlock on pricing. The delay made India the
world’s biggest economy not offering 3G services.
Infosys Downgraded
Infosys lost 2.2 percent to 2,144 rupees. Morgan Stanley reduced its rating on the stock, saying the
stock’s valuation is “rich”. Tata Consultancy Ltd., the biggest software services provider, lost 2.6
percent to 533.5 rupees.

2. Thermax Ltd., a maker of power equipment, jumped 8.6 percent to 471 rupees after it won 2.55
billion rupees- worth ($52 million) of orders for captive boiler power plants, the company said in a
statement to the Bombay Stock Exchange.
Overseas funds purchased 10.4 billion rupees of Indian stocks on Aug. 26, the Securities and
Exchange Board of India said on its Web site. The funds have bought 378.4 billion rupees of Indian
stocks this year to date, compared with a record net sales of 530 billion rupees for the whole of 2008.
To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net.
Last Updated: August 28, 2009 05:20 EDT