Indian shares lost most of their early gains to end 0.1 percent higher on Wednesday, after data showed the country's economic growth slowed in the December quarter to its weakest annual pace in almost three years. The gross domestic product rose 6.1 percent in the period compared with a year earlier, as high interest rates and rising input costs hurt investment and manufacturing.
"The GDP data was disappointing but the possibility of positive newsflow from the euro zone has held markets at the current levels, else it would have fallen more," said Amabareesh Baliga, chief operating officer, Way2Wealth Securities. The main 30-share BSE index, which rose as much as 1.5 percent earlier in the day, closed up 21.56 points at 17,752.68, with 17 of its components rising. The index gained 3.3 percent in February - its second monthly rise. The benchmark has risen about 15 percent in 2012, with foreign funds buying more than $7 billion of equity.
Shares in state-run Oil and Natural Gas Corp (ONGC) gained 3.5 percent, outpacing the wider market, ahead of a government share auction in the company on Thursday, which is expected to receive strong demand. The Indian government plans to raise at least $2.5 billion by selling a 5 percent stake in the country's largest oil and gas producer. Banks fell on worries high inflation could make it difficult for the central bank to cut interest rates after Brent crude prices rose above $122 per barrel.
Private lenders ICICI Bank fell 0.5 percent and HDFC Bank fell 2.5 percent, while State Bank of India, the country's biggest lender, bucked the trend by rising 0.7 percent. Bajaj Auto rose 15.1 percent and Tata Motors gained 13.7 percent in February, making them the biggest gainers this month.
The 50-share NSE index ended 0.18 percent up at 5,385.2. In the broader market, there were about 1.4 gainers for every loser on volume of 973.6 million shares. Elsewhere, the MSCI's measure of Asian markets other than Japan was up 1.44 percent. Power equipment maker BGR Energy rose 9.6 percent after its joint venture with Hitachi Power Europe GmbH emerged as the lowest bidder for a 160-billion-rupee order from NTPC Ltd. Rival Larsen & Toubro Ltd, India's biggest engineering conglomerate, fell 3 percent. Sanghvi Forging and Engineering rose 10.7 percent after it said it won an order worth 50 million rupees.
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