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Markets rise third day, metals climb

Markets rise third day, metals climb
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First Published: Fri, May 28 2010. 01 12 PM IST
Updated: Fri, May 28 2010. 01 12 PM IST
Mumbai: Indian shares climbed 0.6% on Friday and were on course to post their first weekly rise in two weeks, as China’s assertion that Europe will remain a major investment market boosted world equities.
Firm base metal prices in Shanghai bolstered stocks such as Tata Steel, Hindalco and Sterlite Industries.
By 11:08am, the 30-share BSE index was trading up 0.55% at 16,756.95, with 24 of its components gaining. The 50-share NSE index was up 0.5% at 5.025.85.
Tata Motors rose as much as 4.2% after the top vehicle maker beat market estimates with a surge in March quarter earnings, helped by rising sales and profitability at its Jaguar Land Rover unit.
The stock, however, trimmed gains to 0.4%.
Focus will shift to the June-September monsoon, which is vital for farm output, rural income and demand for a wide range of manufactured goods, traders said.
“It all depends on monsoon now. The Europe issue is already priced in,” said Rajen Shah, chief investment officer of Angel Broking.
The annual monsoon, halted by cyclone Laila last week, is likely to hit the country’s southern coast on schedule in the next three to four days, weather officials said on Thursday.
Shah said foreign fund withdrawals of $2.3 billion so far in May should be seen in the context of their heavy investment in Indian equities.
The funds are still net investors of $4.3 billion since the start of January, after record inflow of $17.5 billion in 2009 that had propelled the main index up 81 percent last year.
The benchmark index is up 1.9% this week. But it is down 4.6% so far in May, and in line for its first monthly loss since January.
It has, however, fared better than its peers on strong economic growth projection and mostly robust company results, dealers said.
The MSCI’s measure of Asian shares other than Japan is down 13% so far this month.
Non-ferrous metals producer Sterlite Industries and aluminium maker Hindalco rose 3.3% and 1.1% respectively.
Tata Steel, the world’s eighth largest steel maker by output, was up 0.6% while Jindal Steel & Power was up 2.9%.
Late on Thursday, Tata Steel said its founder Tata Sons is hiking its stake in the steel maker and the company has approved issuing up to 15 million shares and 12 million convertible warrants.
Energy giant Reliance Industries, which has the highest weight on the Sensex, dipped 0.2% to Rs1,019.70.
In the broader market, gainers were more than double the number of losers on volume of 14 million shares.
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First Published: Fri, May 28 2010. 01 12 PM IST
More Topics: India | Stocks | Markets | BSE | NSE |