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Markets rise 0.4%; Reliance, HDFC lead

Markets rise 0.4%; Reliance, HDFC lead
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First Published: Thu, Apr 29 2010. 10 14 AM IST
Updated: Thu, Apr 29 2010. 10 14 AM IST
Mumbai: Indian shares were trading 0.4% higher on Thursday, led by energy major Reliance Industries, with sentiment helped by signs of strength in the US economy.
Tata Steel, the world’s eighth-largest steel maker by output, climbed 1.8% after its European unit Corus said it would raise prices from 30 May.
Metals makers such as Sterlite Industries and Hindalco rose 2.1% and 1% respectively as industrial metals recovered.
By 10:31 am, the BSE 30-share index Sensex was trading up 0.35% at 17,440.87 points, with two-thirds of its components rising. Trading could be choppy because of the expiry of monthly derivatives contracts on the rival National Stock Exchange.
Expectations foreign investors will continue to pour money into Asia’s third-largest economy that is forecast to expand 8.5% in the current fiscal year that began on 1 April supported the rise, traders said.
“We have nothing big to worry about. Greece and Portugal are too small to lead the world to a crisis situation,” said DD Sharma, senior vice-president of research at brokerage Anand Rathi.
The Sensex had fallen 1.8% on Wednesday on worries the debt problems in euro zone would douse global risk appetite.
Sharma said there may be a temporary slowdown, but investors would eventually chase higher growth regions.
“What is important is our economy is growing and the growth is sustainable. This is why global investors like India,” he said.
Foreign funds have moved $6.3 billion into Indian equities so far this year, adding to record inflows of $17.5 billion in 2009.
Reliance Industries, which has the heaviest weight on the Sensex, rose 0.8% to Rs1,024.70, a day after it announced a fourth oil discovery in its exploratory blocks in the Cambay basin.
The top-listed firm, controlled by billionaire Mukesh Ambani, had shed 6.5% over three previous sessions after its quarterly earnings failed to match the street view.
Financials rose on promising long-term outlook in a growing economy. Top lender State Bank of India rose nearly 1%, while rival ICICI Bank climbed 1.7%.
HDFC was trading 0.7% higher after the mortgage lender said on Wednesday its board would consider a stock split on Monday.
In the broader market, gainers were more than thrice the losers on volume of 112 million shares.
The NSE 50-share index Nifty was up 0.4% at 5,235.05.
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First Published: Thu, Apr 29 2010. 10 14 AM IST
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