Indian shares higher

India's main stock index eked out modest gains in flip-flop trading on Monday, with a rebound in commodities markets and global crude oil prices renewing investor worries about the impact of rising interest rates and high inflation. Top mobile carrier Bharti Airtel rose more than 4 percent and the largest household products and consumer goods maker Hindustan Unilever added 3.2 percent, leading the gains in the main index.
But, shares in Indian lender SKS Microfinance plummeted 18.2 percent on Monday after the company swung to a big quarterly loss and analysts forecast a gloomy outlook for the sector. Commodity prices firmed, bouncing back from their biggest weekly drop since 2008, while crude prices pushed above $112 a barrel after shaving off $16 last week - its biggest ever decline in dollar terms. "People are watching commodity and crude prices," said K.K. Mital, head of portfolio management at Globe Capital. "The concern is that crude prices may go up from this level and that would put some pressure."
The 30-share BSE Index closed 0.05 percent higher at 18,528.96 points, but the gains were not broad-based as 18 of its components fell. The index had rebounded on Friday after nine sessions of decline, but posted its biggest weekly loss in more than three-and-a-half months. The index is 9.7 percent down on the year.
The 50-share NSE index closed 0.01 percent lower at 5,551.10 points. Shares in Bharti Airtel added 4.1 percent to 365.20 rupees after losing 8.5 percent in the previous four sessions. Bharti last Thursday reported its quarterly profit fell more than expected, mainly dragged by its loss-making African operations. Hindustan Unilever gained 8.9 rupees to 284.75 rupees. Earlier, the company reported a 2 percent fall in quarterly profit, but beat forecasts.
Financial stocks fell on worries the increase in lending rates would make loans more expensive and hurt business, after ICICI Bank raised its lending rate by 50 basis points from Saturday, the first among the largest banks to do so. Top lender State Bank of India lost 1 percent, HDFC Bank fell 0.8 percent. ICICI Bank closed 0.1 percent lower.