Noon: Sensex rises 1.2%; HDFC, Infosys gain

Noon: Sensex rises 1.2%; HDFC, Infosys gain
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First Published: Mon, Jun 01 2009. 02 50 PM IST
Updated: Mon, Jun 01 2009. 02 50 PM IST
Mumbai: Indian shares rose 1.2% in afternoon session on Monday as brightening signs of a revival in the global economy after positive Chinese manufacturing data boosted investor confidence across Asia.
Sentiment was also upbeat after a survey showed manufacturing activity in India expanded for a second straight month in May to its highest in eight months, reflecting a revival in domestic demand but export orders remained weak.
Top mortgage lender Housing Development Finance Corp and outsourcer Infosys Technologies led the gains.
State-run NTPC Ltd was also a major gainer, after the leading power producer said on Friday it aimed to invest Rs550 billion ($12 billion) in the next three years to add 24,000 megawatts of generation capacity.
By 01:09 pm, the 30-share BSE index was 185 points, or 1,2%, up at 14,810.63, after soaring 28.3% in May - its strongest monthly performance in 17 years, boosted by positive economic data and hopes for market-friendly reforms.
The benchmark had risen as much as 1.9% in early trade before trimming the rise.
“We opened with a bang because Asia was good, but a GM bankruptcy filing could dampen sentiment and pull down shares,” Arun Kejriwal, strategist at research firm KRIS, said.
General Motors will file for bankruptcy on Monday, US officials said, forcing the 100-year-old automaker once seen as a symbol of American economic might and dynamism into a new and uncertain era of government ownership.
“I won’t be surprised if the market closes flattish today,” Kejriwal said.
The benchmark has jumped 82% from a 2009 low in early March, and is up 52% since the start of the year after slumping more than half in 2008.
Foreign funds, the main drivers of the market, have pumped about $6 billion into shares in the past two-and-half months.
The 50-share NSE index was up 1.62% at 4,521.10
Asian markets were higher on Monday, with Japan’s Nikkei up 1.6%, while MSCI’s measure of other Asian markets rose 2.4%.
The Chinese manufacturing sector lost some momentum in May but continued to expand for the third month in a row, a survey showed on Monday.
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First Published: Mon, Jun 01 2009. 02 50 PM IST
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