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Markets rise 0.7%; Shipping Corp jumps

Markets rise 0.7%; Shipping Corp jumps
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First Published: Wed, Oct 06 2010. 04 09 PM IST
Updated: Wed, Oct 06 2010. 04 09 PM IST
Mumbai: With no sign of abatement in foreign fund inflows and with firm world equities lending a hand, Indian shares gained 0.7% on Wednesday, for the fourth session in five, led by Reliance Industries.
World stocks rallied after the Bank of Japan’s monetary easing measures bolstered expectations of a new round of central bank action to help feeble economies.
The 30-share BSE index closed 0.66% or 135.37 points higher at 20,543.08, with 20 components advancing. It had risen as much as 1.3% in early trade.
“The global mood towards riskier assets is rising,” said Rakesh Rawal, head of private wealth management at brokerage Anand Rathi.
“When investors start looking at such assets, India is naturally one of the attractive bets considering the economic growth here. Large chunks of money seem to be allocated to India.”
Foreign fund have poured in $20.3 billion into Indian shares so far in 2010, driving the index 17.6% higher.
They have been net buyers of Indian equities in all sessions since the start of September, with the investments since then adding up to $7.5 billion.
Advancing shares outnumbered declining ones in a ratio of 1.5:1 in the broader market on a robust volume of 621 million shares.
The 50-share NSE index rose 0.7% to 6,186.45 points. It rose as much as 1.3% to 6,223.40 points, its highest since January 2008.
Shipping Corp of India, the country’s largest shipping company, rose as much as 20.5% to Rs202.50, its highest since January 2008, after the Indian cabinet approved a 10% stake sale in the state-run company.
Energy conglomerate Reliance Industries climbed 2.1%, playing catch up after its recent underperformance compared with the benchmark index.
The stock, which has the highest weight on the main index, is still down 4.1% year to date, which dealers said was due to a lack of any near-term triggers.
Sources told Reuters on Tuesday Reliance and Chesapeake Energy Inc have ended talks over the sale of a stake in the US company’s position in the Eagle Ford shale in south Texas.
Metal producers rose on strong momentum in industrial metal prices in London trade, fuelled by a weak dollar and inflation fears.
Non-ferrous metals producer Sterlite Industries and aluminium producer Hindalco rose nearly 4% and 3.6% respectively.
Tata Steel, world’s seventh-largest maker of the alloy, firmed 1.4%.
Software firms gained on expectations of robust quarterly earnings, dealer said. Infosys Technologies will kick start the season when it unveils its second-quarter earnings on 15 October.
“Given our expectations of a strong quarter and favourable cross currency movements, we expect Infosys to raise its $-terms revenue guidance to 22-24% (from 19-21%),” Citigroup analysts said in a note earlier this month.
Infosys and climbed 0.6% and 0.7% respectively, while sector leader Tata Consultancy Services rose 0.8%.
MSCI world equity index traded 0.7% by 3:51pm, while the more volatile emerging markets index rose 1.3%.
STOCKS
Movie distributor Eros International Media Ltd debuted at a premium of 23% to its issue price of Rs175 per share. The stock gave up some gains and closed at Rs190.05.
Tutorial service provider Career Point Infosystems listed at a premium of 53.2% against its issue price of Rs310. It extended gains and closed at Rs632.35
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First Published: Wed, Oct 06 2010. 04 09 PM IST
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