Indian shares pare gains on profit booking as domestic politics rankle

Indian shares pared gains amid volatile trade as investors booked profits, with the market eyeing a possible outcome of the political wrangling over a nuclear treaty with the US. Today is the second and last day of a central committee meet of the Communist Party of India (Marxists), a key component of a communist bloc which offers outside support to India's coalition government. The Left says the recently inked nuclear deal with the US, which the Congress-led government claims will meet civilian energy needs, undermines India's rights as a sovereign nation. CPI(M) general secretary Prakash Karat will meet the press following the committee meet, at 1030 GMT. At 0756 GMT, the Bombay (OTCBB:BBAO) Stock Exchange's benchmark Sensex was up 0.82 pct, or 117.41 points, at 14,366.07, while the National Stock Exchange's S&P CNx Nifty was up 0.65 pct, at 4,180.15 points. The Sensex had climbed as high as 14,554.93 points in early trade. Among the BSE 30, 24 shares advanced and 6 declined. In the broader market, 1,471 shares gained, 1,025 lost and 42 were unchanged. Banking shares slipped into the red and metal shares came off their day's highs on profit sales. ICICI Bank (NYSE:IBN) was down 0.92 pct at 839 rupees, while HDFC Bank (NYSE:HDB) fell 1.63 pct to 1,101 rupees. Copper and aluminium miner Hindalco Industries Ltd (OOTC:HNDFF) was up 0.72 pct at 140 rupees, but down from an intraday high of 144.25 rupees. ITC Ltd was up 1.33 pct to 160.50 rupees, from a high of 162.90 rupees. ITC said yesterday it will set up small format stores in rural areas along the lines of its existing hypermarket chain, Choupal Sagar, by early next year. Larsen & Toubro Ltd was up 2.18 pct at 2,436.30 rupees, but down the day's high of 2,464.70 rupees. The engineering and construction giant said it has won a repeat order valued at over 70 mln usd from Dutch firm RollDock BV.