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Markets end 0.6% up on firmer global cues

Markets end 0.6% up on firmer global cues
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First Published: Tue, Feb 09 2010. 04 50 PM IST
Updated: Tue, Feb 09 2010. 04 50 PM IST
Mumbai: Indian shares climbed 0.7% on Tuesday, stretching gains for a third day, as European and Asian markets saw some respite but the outlook remained clouded by uncertainties.
Export-focused outsourcers such as bellwether Infosys Technologies, bigger rival Tata Consultancy Services and No. 3 Wipro led the rise on a view their recent fall was overdone.
India’s economy is picking up momentum and industrial output in December is expected to have climbed an annual 12%, a Reuters poll showed. The data is due on Friday.
The 30-share BSE index .BSESN closed up 0.67 percent, or 106.57 points, at 16,042.18, after seesawing in early trade. Nineteen of its components advanced. The 50-share NSE index closed 0.7% higher at 4,792.65.
“The market should be rangebound over the next few weeks,” said Sandip Sabharwal, CEO of portfolio management services at Prabhudas Lilladher, with investors wary ahead of the federal budget on 26 February.
Foreign funds have pulled out $1.7 billion over the past 10 sessions, pushing the main index down 8 percent this year.
In 2009, the benchmark had jumped 81% when foreigners had bought shares worth $17.5 billion. “The biggest risk in India is the dependence on foreign capital to fund external deficits,” Stephen Roach, chairman of Morgan Stanley Asia, told reporters in Mumbai.
“It is certainly going to be a tougher market climate this year as investors come to grips with some of the more normal after-shocks of the financial crisis,” he said, after the big surge in Asian equities last year.
Infosys rose 2.9% and Tata Consultancy Services and Wipro climbed 1.4% and 2.5% respectively. Infosys is down 5.2% so far in 2010, while Wipro and TCS have lost nearly 4 and 2.1% respectively.
“We reiterate our positive stance on the three Tier-I companies (Infosys, Wipro and TCS) and see the recent fall in stock prices as an opportunity to buy these names,” Kotak Securities said in a note.
“We also find the street’s concerns on valuations and potential negative impact of recent political news flow in the US a bit overdone,” it said. Top mobile operator Bharti Airtel extended Monday’s rise, adding 1.8% to 313.80 rupees as investors chased beaten down sectors.
Banks rose on positive long-term outlook. Private-sector lenders ICICI Bank and HDFC Bank climbed 0.7% and 0.3% respectively. Top lender State Bank of India rose 0.8%.
Non-ferrous metals producer Sterlite Industries rose 0.7% to Rs757.55, as copper prices climbed 1%.
In the broader market, gainers outpaced losers in a ratio of 1.2:1 on volume of 341 million shares, less than last week’s daily average of 394 million shares.
The FTSEurofirst 300 index of top European shares was up 0.2% by 3:46pm, while MSCI’s measure of Asian markets other than Japan .MSCIAPJ rose nearly 1%.
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First Published: Tue, Feb 09 2010. 04 50 PM IST
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