×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Markets end 0.2% up on global stock gains

Markets end 0.2% up on global stock gains
Comment E-mail Print Share
First Published: Wed, Jun 16 2010. 04 13 PM IST
Updated: Wed, Jun 16 2010. 04 13 PM IST
Mumbai: Indian shares rose for a sixth straight session on Wednesday, their biggest winning run in nine months, as the success of European debt auctions encouraged fresh risk-taking and boosted world stocks.
Financials led the gains on expectations of higher demand for loans, backed by economic growth in the world’s second-fastest growing major economy.
The 30-share BSE index rose 0.29% or 50.04 points to 17,462.87, its highest close since 30 April, with 14 of its components closing in the green.
It has gained more than 5% over the six consecutive sessions.
“Our market was pushed higher by better advance tax numbers and strong global cues,” said Arun Kejriwal, director of research firm KRIS.
World stocks measured by the MSCI All-Country World Index advanced 0.2% by 3:50pm, while its volatile emerging markets counterpart rose 0.5%.
A government source told Reuters on Tuesday Reliance Industries and Tata Motors paid double the advance tax for the June quarter from a year earlier, while Tata Steel’s payment was 30% higher.
“But if overseas cues turn negative, the rally can be stalled and our market could drag,” he added.
So far in June, foreign funds have been net buyers of about $439 million of Indian equities and the benchmark is up more than 3%.
India’s Sensex remains barely changed so far this year, while the MSCI All-Country World Index and its emerging market index have both shed more than 5%.
Foreign funds had withdrawn nearly $2 billion in May, as euro zone’s fiscal woes curbed their risk-taking capacity, which saw India’s 30-share main index shed 3.5%.
Leading private-sector lenders ICICI Bank and HDFC Bank rose 2.4% and 0.5% respectively. Mortgage lender Housing Development Finance Corp rose 1.8%. Top lender State Bank of India, bucked the trend and shed 0.1%.
Top truck and bus maker Tata Motors, which also makes cars, raced 2.4%, after the company said late Tuesday global vehicle sales in May jumped 50% from a year earlier.
Software majors advanced as hopes of a global recovery led to improving order visibility. India’s top outsourcer Tata Consultancy Services rose 0.8%. Earlier, the firm said it had signed a multi-year outsourcing contract with Norway’s Telenor. Smaller rivals Infosys and Wipro climbed 1.1% and 0.3% respectively.
Energy giant Reliance Industries, which has the highest weight on the Sensex, dropped 0.8% after rising nearly 7% in the last five sessions.
In the broader market, advancing shares outpaced declining ones in the ratio of 1.1:1 on a relatively better volume of 436 million shares.
The 50-share NSE index rose 0.2% to 5,233.25 points.
STOCKS
Metal makers such as Sterlite Industries and Hindalco rose 2.1% and 0.1% respectively as London base metal prices rallied.
Cairn India rose 1.1% to Rs308.35, helped by firm crude oil prices and as the oil explorer said late Tuesday it began selling crude through pipeline from its Rajasthan block.
Comment E-mail Print Share
First Published: Wed, Jun 16 2010. 04 13 PM IST
More Topics: India | Stocks | Markets | BSE | NSE |