Mumbai: India’s main indexes ended higher on Monday, led by gains in export-driven technology shares such as Infosys Ltd due to the rupee’s weakness versus the dollar, while reports of a stake sale to Etihad Airways buoyed Jet Airways (India) Ltd’s stocks.
However, the market is still cautious and focusing on the outcome of Greek aid negotiations as euro zone finance ministers and the International Monetary Fund (IMF) will meet later to try to unfreeze the second bailout package for Greece.
Analysts are hoping the government will be able to manage some reforms as there no choice left given the current account deficit, given both the Houses of Parliament were adjourned on the third day of winter session.
“There are strong expectations from the winter session. At least foreign direct investment (FDI) in multi brand should go through otherwise market will remain stagnant till next Reserve Bank of India (RBI) meeting,” said G. Chokkalingam, executive director and chief investment officer, Centrum Wealth Management.
The benchmark BSE index ended up 0.16%, or 30.44 points, to end at 18,537.01.
The 50-share NSE index also rose 0.17%, or 9.30 points, to 5635.90.
Struggling Indian carriers Jet Airways and SpiceJet Ltd are in talks with Abu Dhabi’s Etihad Airways and Malaysia’s AirAsia Bhd to sell minority stakes, a senior government official with direct knowledge of the talks said.
Jet Airways shares rose 10.9% while SpiceJet ended 13% higher.
GlaxoSmithKline Consumer Healthcare Ltd rose to its maximum daily limit of 20%, after GlaxoSmithKline Plc said it plans to buy up to an additional 31.8% stake in its arm for about $940 million.
Export-driven technology shares rose following weakness in the rupee. Infosys rose 1.7%, while Tata Consultancy Services Ltd (TCS) ended up 0.4%.
Shares in United Spirits Ltd gained 3.2% after Nomura upgraded the stock to “buy” from “neutral” and raised its target price to Rs.2,200 from Rs.675, advocating a structural re-rating after a deal with Diageo Plc.
However, among the stocks that fell, shares in state-run Hindustan Copper Ltd ended 20% lower, to their maximum daily limit for a second day after the government’s stake sale.
The government raised Rs.810 crore ($147 million) by selling shares of Hindustan Copper Ltd on Friday, kick-starting a stalled divestment programme that is crucial to reining in a ballooning fiscal deficit.
Shares in Mahindra and Mahindra Ltd fell 3.3% after reports that the automaker entered into a takeover deal with an Italian private equity fund for 50% of British
luxury car maker Aston Martin.
Brokerage Edelweiss said in a note that Aston Martin would require significant investments in research and development, and benefits of technology transfer to the Indian tractor and utility vehicle maker’s product portfolio was “questionable”
given little similarity between portfolios.