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

Markets rise for 3rd day; at 5-week closing high

Markets rise for 3rd day; at 5-week closing high
Comment E-mail Print Share
First Published: Tue, Dec 21 2010. 04 18 PM IST
Updated: Tue, Dec 21 2010. 04 18 PM IST
Mumbai: Shares rose for the third straight session and closed 0.9% higher on Tuesday helped by firm world equities and investor optimism surrounding next year’s prospects.
Financials and metal producers were the top gainers, propelling the index to their highest close in five weeks.
Lenders advanced as investors placed bets on promising loan demand prospects backed by strong economic growth in the world’s second-fastest growing major economy after China.
Top lender State Bank of India gained 1.5% while leading private lenders ICICI Bank and HDFC Bank firmed 3.6% and 1.9%.
The 30-share BSE index climbed 0.86% or 171.44 points to 20,060.32, its highest close since 15 November, with two-thirds of its components closing in the green.
“The market here rose as the rest of the world was doing fine. Also, it seems like the confidence is coming back,” said Anish Marfatia, head of sales trading at Avendus Securities. “The market will be choppy with an upward bias until quarterly earnings trickle in mid-January.”
Foreign funds have invested a total of $28.4 billion in the Indian primary and secondary equities, driving the benchmark index nearly 15% higher so far this year.
However, their interest has been muted in the recent few sessions as the holiday season nears in the western countries.
“The next year looks pretty good for markets. We can hope for a 9% plus growth n GDP. Also, domestic consumption story is in place,” said K. K. Mital, head of portfolio management services at Globe Capital. Mital expects the Sensex to touch 25,000 points by end-2011.
Advancing shares outpaced declining ones in a ratio of 1.8:1, in a relatively better volume of 456 million shares.
Metal makers rallied rose as base metals traded in the green in key world markets.
London copper prices hit a record high, buoyed by supply concerns after Chile’s Collahuasi mine halted shipments, while a weaker dollar and strength in the stock market also lent support.
Non-ferrous metals producer Sterlite Industries and aluminium maker Hindalco firmed 4.6% and 4.5%. Tata Steel, the world’s seventh-largest steelmaker, rose 1.7%.
JSW Steel firmed 2.2% after it said it plans to buy a controlling stake in Ispat Industries for $476 million, lower than analysts’ expectations, catapulting it to the No. 1 spot of the nation’s steel producers.
Shares in Ispat Industries, which were the most-traded among main shares on the Bombay Stock Exchange, tumbled 15%.
Software firm Mahindra Satyam jumped 8.8% on media reports that the company is planning to relist its shares on the New York Stock Exchange, dealers said.
Leading outsourcers Tata Consultancy Services and Infosys Technologies shed 0.7% and 0.6% after hitting all-time highs in the previous session.
The 50-share NSE index gained 0.9% to 6,000.65 points.
At 4:00pm, FTSEurofirst 300 index of top European shares was up 0.7% while the MSCI’s measure of Asian markets other than Japan gained 1.1%.
STOCKS
Top motorcycle maker Hero Honda dropped 0.8% to Rs 1,966 as traders booked profits after the stock jumped 18% on Monday.
India Infoline jumped 7% to Rs 81.80 as the brokerage firm said after trading hours on Monday that it will consider a share buyback proposal on 23 December.
Comment E-mail Print Share
First Published: Tue, Dec 21 2010. 04 18 PM IST
More Topics: India | Stocks | Markets | BSE | NSE |