Sensex Drifts Lower In Early Trade

(RTTNews) - Indian shares fell in early trading on Monday, tracking mixed global cues. The benchmark indexes Sensex and Nifty are currently down about 0.4 percent each, led by losses in Tata Steel, ITC, Asian Paints, Ambuja Cements and Vedanta.

The Indian rupee opened marginally lower at 63.62 per dollar after Federal Reserve Chairwoman Janel Yellen hinted that it would be appropriate to raise interest rates at some point this year, as long as economic activity picks up.

ITC is losing 1.5 percent after the country's largest cigarette maker posted a weak set of numbers for the March quarter due to a fall in volumes amid a government push to discourage tobacco consumption.

United Bank of India is little changed. The public sector lender said that it no longer expects to recover its dues from the beleaguered Kingfisher Airlines.

Reliance Industries is moving down 0.3 percent on reports it plans to re-commission its entire petrol pump network by March next year.

DLF is edging down 0.3 percent. The realty firm said it is eyeing Rs. 4,000-crore new sales bookings this fiscal.

SBI is declining 0.4 percent as Morgan Stanley slashed its target price on the stock.

Lupin is rising 1.4 percent while Tata Power Company is declining 1.3 percent. Shares of the drugmaker will soon replace the private sector electricity producer with effect from June 22, the BSE said in a statement.

SAIL is gaining 0.6 percent. The PSU giant partnered with NRI billionaire Lakshmi Mittal-led ArcelorMittal to set up an automotive steel manufacturing facility in India with an estimated Rs 5,000 crore investment, under a joint venture.

City Union Bank is rallying 3.8 percent on reporting a 19 percent increase in Q4 net profit.

BPCL and HPCL are up more than 1 percent each and IOC is adding 0.3 percent after oil prices fell about 2 percent on Friday amid a rallying dollar and profit-taking ahead of a long U.S. holiday weekend.

The benchmark indexes Sensex and Nifty climbed more than 2 percent each to hit five-week closing highs last week as easing headline inflation, falling oil prices and news that the government has bettered its targets for fiscal deficit and revenue deficit for the year ended March fueled hopes that another rate cut is on the cards on June 2.