Mumbai: Markets were up 0.5% on Monday, with energy major Reliance Industries and financials leading the charge, as emergency funding for Greece helped ease default concerns and bolstered risk appetite.
Traders said a revival in foreign fund buying underpinned the market that has been one of the world’s worst performers this year.
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“Our market had under performed, so it was attractively priced compared with other markets,” said Neeraj Dewan, director of Quantum Securities.
Data from Nomura showed foreigners preferred Indian equities the most in Asia in the week to 1 July, and pumped in $1.1 million.
At 10:12am, the 30-share BSE index was up 0.5% at 18,857.25 points, extending last week’s 2.9% gain. Twenty-four components rose. The 50-share NSE index was up 0.5% at 5,652.60.
Reliance Industries nudged up 1 .5% t after sliding 4.1% on Friday.
The retail subsidiary of the conglomerate has appointed two former Wal-Mart executives to run the operations, the Economic Times reported on Monday, ahead of an expected opening up of the retail sector.
Around 120 million shares changed hands on the NSE, with gainers beating losers in the ratio of 3:1, indicating a positive market breadth.
Top-listed real estate firm DLF rose 4.3% to Rs 229.65, after RBS upgraded the stock to ‘buy´ from ‘sell´ and raised the target price to Rs 250 from 195 on improving cash-flow and a ramp-up in sale of its non-core assets.
“We believe the worst is over for DLF and expect a gradual recovery,” RBS analysts said in a note late on Friday.
Financials firmed with the sector index rising 0.8%, as it catches up with a poor show so far this year. It is still down nearly 4% in 2011.
Leading lenders State Bank of India , ICICI Bank and HDFC Bank were up between 0.7% and 0.8%.
Dewan said the outlook was still uncertain due to rate worries and slowing growth, which has pulled the BSE index down more than 8% year-to-date.
“It all depends on how monsoon and inflation pan out. If inflation peaks out and hawkish policy stance does not continue, only then we can see the rally can be sustained,” he said.
UltraTech Cement and Jaiprakash Associates were up 1% and 1.4% respectively after they reported higher cement shipments in June.
The MSCI’s measure of Asian markets other than Japan was up 1.3%, while Japan’s Nikkei rose 1.2%.
Sugar producers such as Shree Renuka Sugars , Dhampur Sugar Mills and Bajaj Hindusthan gained between 3.6 and 6.2% on hopes the government may ease restrictions on the sector.
Hotel Leelaventures gained 0.7% to Rs 41.20 after it said on Saturday it plans to expand its property in Goa by adding 20 rooms and bring its total to 206 rooms.
Graphic by Naveen Kumar Saini/Mint