Mumbai: Indian shares climbed 0.6% on Thursday, in tandem with a recovery in Asian markets after robust Chinese exports underlined strong growth, but investors were hesitant to build large positions.
Until the debt problems in the euro zone are resolved and foreign funds resume investment, the market will find it hard to push ahead, traders said.
Energy conglomerate Reliance Industries topped the gainers after the Economic Times reported it was looking to enter the telecoms market when the opportunity arises, with a focus on selling phone and Internet services to companies.
Bharti Airtel climbed 1.7% after a top official told Reuters the leading mobile operator would offer affordable rates in Africa to boost usage but has no plan to launch a price war.
By 10:30am, the 30-share BSE index was trading up 0.63% at 16,762.69, with 27 of its components advancing. The 50-share NSE index was up 0.6% at 5,032.25.
“The turbulence in Europe needs to settle before any meaningful buying happens to drive the market higher,” said R. Ganesh, director of Systematix Shares.
Foreign funds are net buyers of about $84 million of stocks so far this month after dumping nearly $2 billion in May. The benchmark stock index is down more than 4% in the year to date.
Traders Federal Reserve Chairman Ben Bernanke’s assurance on Wednesday that the US economic recovery was on solid footing helped sentiment.
Reliance Industries, which has the highest weight on the Sensex, climbed 0.5% to Rs1,011.90.
Financials gained on positive outlook for loan demand in the world’s second-fastest growing major economy.
No. 1 lender State Bank of India rose 1.9% while HDFC Bank climbed 0.8%. Mortgage lender Housing Development Finance Corp firmed 1.2%.
In the broader market, nearly three shares advanced for every share that declined on volume of 74 million shares.
The MSCI’s measure of Asian markets other than Japan and Japan’s Nikkei were each up 0.9%.