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Markets extend gains to 2%; financials rally

Markets extend gains to 2%; financials rally
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First Published: Wed, Feb 03 2010. 10 59 AM IST
Updated: Wed, Feb 03 2010. 10 59 AM IST
Mumbai: Indian shares extended gains to 2% on Wednesday morning, with financials leading the rally, supported by a rise in global markets.
At 10:50am, the 30-share BSE index was up 1.9% at 16,467.69 points, with only one component declining. The 50-share NSE index was up nearly 1.9% at 4,921.95.
The BSE Sensex was trading more than 1% higher since opening today, led by gains in metals makers on higher base metal prices and supported by rise in world equities on upbeat US corporate earnings.
Non-ferrous metals producer Sterlite Industries and aluminium maker Hindalco rose 3.3% and 2.7% respectively, buoyed by a rise in base metal prices.
Tata Steel, world’s eighth-largest steel maker by output, rose 3.3% to Rs591.20.
By 10:10am, the 30-share BSE Index was trading up 1.4% at 16,389.53, with only one component declining.
”We opened up because of firm global markets. But, I doubt if we can stay positive through the day,” said Nilesh Doshi, president of equities at Techno Shares.
”All the results (earnings) are now out. There is no new positive trigger to drive the market up,” he said, adding, investors were nervous ahead of the federal budget on 26 February.
”Historical precedent does not favor the market for the next two months,” Morgan Stanley said in a note.
”The markets are usually flat in the month ahead of the budget and, in two out of three years, fall in the month following it,” it added.
Financials gained as investors placed bets on their long-term outlook in a growing economy.
Top private lender ICICI Bank and top lender State Bank of India climbed 1.6% each, while mortgage lender Housing Development Finance Corp rose 2.2%.
In the broader market, gainers outpaced losers in a ratio of 3.4:1, while 101 million shares changed hands on the Bombay Stock Exchange.
The 50-share NSE index was up 1.6% at 4,906.
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First Published: Wed, Feb 03 2010. 10 59 AM IST
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