Markets rise 0.4%; banks, autos climb

Markets rise 0.4%; banks, autos climb
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First Published: Thu, Sep 02 2010. 11 13 AM IST
Updated: Thu, Sep 02 2010. 11 13 AM IST
Mumbai: Indian shares climbed 0.4% on Thursday after better-than-expected US factory data lifted Asian equities, but there was resistance as investors were not convinced about the outlook.
Financials firmed on expectations loan demand will pick up in a growing economy, while auto makers rose after 20-30% rise in August sales.
Jaiprakash Associates rallied 3.5% after it said late on Wednesday August cement dispatches jumped 51%.
By 10:46am, the 30-share BSE index was trading up 0.44% at 18,286.80, with 23 of its components gaining. It rose as much as 0.8% early.
“We have been rising due to firm global markets, but there is not enough confidence to sustain the rally,” said Ambareesh Baliga, vice-president of Karvy Stock Broking. He said investors were cautious and were booking profits.
The benchmark index is up 4.7% this year, largely driven by foreign portfolio investments of $12.9 billion. “Valuations are not cheap. It is more of a traders’ market,” Baliga said.
Top lender State Bank of India rose 0.3% while rivals ICICI Bank and HDFC Bank climbed 0.9% and 1.4% respectively. Mortgage lender Housing Development Finance Corp added 0.8%.
Tata Motors rose 1.9%, while Maruti Suzuki and Mahindra & Mahindra firmed 1.2% and 0.4% respectively on robust sales.
Also, Tata Motors chairman said late on Wednesday the company plans to invest $641 million every year for the next three years. Top motorcycle maker Hero Honda dropped 1.3% as its August two-wheeler sales rose by only 2%.
In the broader market, gainers outnumbered losers in a ratio of 2.6:1 on volume of 125 million shares.
The 50-share NSE index was up 0.3% at 5,490.35.
STOCKS
Bajaj Auto was up 1.7% at 2,Rs797.05, as the second-largest motorcycle maker said its August auto sales rose by 55%.
Reliance Broadcast Network rose 5% to Rs116 after its board approved raising over Rs4 00 crore through an issue of equity shares to its founder and other investors.
Koutons Retail India Ltd was up 1.4% at Rs310 after it said its board would meet on 4 September to consider raising funds through issue of shares to the public or to qualified institutional buyers.
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First Published: Thu, Sep 02 2010. 11 13 AM IST
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