Mumbai: Indian shares shrugged off a shaky start and rose 1.3% on Thursday, as investors covered short positions on the last day of monthly derivatives contracts.
Energy giant Reliance Industries and leading engineering and construction firm Larsen & Toubro led the gains.
“Today, anything that happens will depend on the derivatives expiry,” Arun Kejriwal, strategist at research firm KRIS, said.
By 12:12pm, the 30-share BSE index was up 1.3% at 14,289.64 points, with 24 stocks advancing, after briefly turning negative in early deals. The 50-share NSE index was up 0.7% at 4,306.55.
The benchmark has gained three-quarters of its value from a 2009 low in early March, riding a global rally and fuelled by about $5.5 billion of investments from foreign funds.
Expectations are high after the Congress party-led coalition won a second term and Finance Minister Pranab Mukherjee said the government needed to push long pending reforms in the financial sector and in the real economy to support growth.
India’s annual inflation was at 0.61% in the 12 months to 16 May, matching the previous week’s annual rise, government data showed on Thursday.
Reliance, which has the most weight in the main index, rose 1.6% to 2,222.10 rupees, while Larsen gained 2.8% to Rs1,348.50 ahead of its financial result.
Top telecoms firm Bharti Airtel, which is in merger talks with South Africa’s MTN ,advanced 2.8% to Rs790.35 after falling over 105 in the past three sessions.
In the broader section, gainers led losers by more than 1.5 to 1 on relatively heavy volume of 317.1 million shares.