Sensex in red,Tata Steel up,Maruti falls

Sensex- 17,926.99; -58.89

Nifty- 5,380.4; -16.35

* Rising interest rates,Greece woes dent investor confidence

* More pain in the offing – dealer

* Tata Steel stock gains after Riversdale stake sale

* Export-led TCS, drop; Reliance near 2-yr low

Tata Steel stock bucked the trend and climbed 2.6 percent after the steelmaker agreed late on Thursday to sell its 26 percent stake in Australia’s Riversdale to Rio Tinto for $1.1 billion.

Leading car maker Maruti Suzuki initially rallied 3.3 percent after a 13-day strike ended,but soon faltered and was down 0.3 percent as the workers agitation at a plant in northern India had caused a production loss of more than $90 million.

At 10:50 a.m. (0520 GMT),the 30-share BSE index was down 0.44 percent at 17,906.10 points after rising 0.4 percent early. It is down 1.9 percent for the week.

Twelve of its components declined.

There is still more pain to come. Globally,developments are not good,said Sunder Subramaniam,senior manager of sales at brokerage Sharekhan.

The index heavyweights like Reliance Industries,Infosys — are dragging,which are a worry.

The central bank raised interest rates on Thursday for the 10th time in just over a year to combat stubbornly high inflation and signalled more increases to come even as growth in Asia’s third-largest economy is slowing down.

Foreign funds have pulled out $235 million from Indian equities over four sessions to June 15,due to slowing growth concerns in Asia’s third largest economy.

The 50-share NSE index was down 0.4 percent at 5,375.50.

Losers and gainers were nearly equal in number in the broader market,with 31 million shares traded on the NSE.

Export-focused software companies led the decline on worries a gloomy world economic outlook could hurt their revenue. Tata Consultancy Services and Infosys Technologies fell 0.5 percent and 1.1 percent respectively.

Energy giant Reliance Industries fell as much as 1.3 percent to 875.60 rupees,its lowest level since July 13,2009,on lack of positive triggers,dealers said.

Investors were also watching the progress of monsoon after the weather office said on Thursday rains were 9.0 percent below normal in the week to June 15.

The monsoon,vital for farm output in India’s trillion-dollar economy,hit the country’s southern coast on May 29 this year,three days ahead of schedule.

The MSCI’s measure of Asian markets other than Japan was down 0.7 percent while Japan’s Nikkei dropped 0.6 percent.

STOCKS ON THE MOVE

* ING Vysya Bank gained nearly 1 percent to 332.50 rupees after the lender said it had raised 5.13 billion rupees through a share sale to institutional investors.

* Engineering and construction firm Larsen & Toubro extended losses and slipped 0.2 percent to 1,675.20 rupees,on concerns slowing economic growth could hurt its order inflow.

TOP THREE MAIN STOCKS BY VOLUME ON NSE

* Idea Cellular on 7.2 million shares

* Sun TV on 4.5 million shares

* Punj Lloyd on 3.7 million shares

FACTORS TO WATCH

* Euro wins temporary reprieve but shackled by debt woes

* Oil heads for biggest weekly drop since May on Greece

* Euro,stocks slip with caution key on Greece

STOCKS/PREOPEN:Indian shares set to fall for second week; Maruti in focus

Indian shares should open lower on Friday and post their second weekly loss in a row,as rising domestic interest rates and Greek woes dampen investor appetite for risk.

The central bank raised interest rates on Thursday for the 10th time in just over a year to combat stubbornly high inflation and signalled more increases to come even as growth in Asia’s third-largest economy is slowing down.

Maruti Suzuki will be on the radar after the leading car maker ended a 13-day strike that had crippled production and led to more than $90 million in lost output.

Tata Steel will be watched after the steelmaker agreed late on Thursday to sell its 26 percent stake in Australia’s Riversdale to Rio Tinto for $1.1 billion,giving the Anglo-Australian giant full control of the coal miner.

The MSCI’s measure of Asian markets other than Japan was down 0.1 percent by 0303 GMT,while Japan’s Nikkei traded barely changed.

The Nifty India stock futures in Singapore were down 0.4 percent,indicating a weak open in the domestic market.

On Thursday,the 30-share BSE index dropped 0.8 percent to 17,985.88 points. It is down 1.6 percent so far this week.

STOCKS TO WATCH

* ING Vysya Bank Ltd after the firm said it had raised 5.13 billion rupees through a share sale to institutional investors.

* VA Tech Wabag Ltd after the central bank approved raising foreign institutional investment limit in the firm to 49 percent.

* Metal producers such as Sterlite Industries and Hindalco due to a rise in base metal prices.

FACTORS TO WATCH

* Euro calmer after wild ride; Greece aid eyed

* Oil steady on euro,heads for weekly drop on Greece

* Euro,stocks stable but caution key on Greece

* Dow,S&P rise in volatile session; Nasdaq slips