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Markets rise 7th day; Reliance, L&T gain

Markets rise 7th day; Reliance, L&T gain
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First Published: Thu, Jun 17 2010. 03 47 PM IST
Updated: Thu, Jun 17 2010. 03 47 PM IST
Mumbai: Indian shares climbed on Thursday for the seventh consecutive session in their longest winning run in 10 months, driven by expectations for robust corporate earnings growth and improving global risk appetite.
Foreign funds, which are a trend-setter for the market, have moved $588 million into Indian equities in June, with the inflow picking up after data last week showed factory output expanded 17.6% in April.
The 30-share BSE index rose 0.88%, or 153.82 points, to 17,616.69, its highest close since 27 April. The benchmark has gained 6% over seven sessions, its best run since August 2009. The 50-share NSE index rose 0.8% to 5,274.85.
Twenty-three of its components closed in the green.
“Unless there is any new bad news from overseas, we should be able to hold on to the gains,” said Rakesh Rawal, who manages $1 billion as head of private wealth management at Anand Rathi Financial Services.
Engineering and construction conglomerate Larsen & Toubro Ltd and energy major Reliance Industries Ltd led the gainers as a rapidly expanding economy boosted their outlook.
Reliance, which has the highest weight on the Sensex, rose 1.3%, ahead of its annual general meeting on Friday. Larsen rallied 3.3%, its biggest one-day rise in a month.
Advance tax paid by Reliance for the June quarter was more than double a year earlier, while Larsen’s payment was up 18%, provisional data showed.
The BSE index is up 0.9% in 2010, with foreign funds buying a net of more than $5 billion in the period. Debt problems in the euro zone had triggered an outflow of $2 billion in May, but investor sentiment has now improved.
In 2009, the benchmark had jumped 81% on foreign inflows of a record $17.5 billion.
Financials rose as food and fuel price inflation in Asia’s third-largest economy slowed in early June, easing pressure on the central bank to speed up its process of tightening monetary policy. Leading private sector lenders ICICI Bank and HDFC Bank rose 0.7% and 1.3% respectively.
State-run explorer Oil & Natural Gas Corp was up 1.8% after the Hindustan Times reported a panel of ministers to look into freeing of fuel prices could meet next week.
In the broader market, gainers outnumbered losers in a ratio of 1.1:1 on volume of 367 million shares.
STOCKS
Fortis Healthcare, which is positioning itself for a possible battle with Malaysian sovereign wealth fund Khazanah for Singapore’s Parkway Holdings, rose 1.5% to Rs154.70.
On Thursday, the Financial Express reported Reliance Industries firm may buy a 26% stake in Fortis.
Mindtree climbed 3.4% to Rs569.40. The IT services firm said it received a contract from ‘Aadhaar´ earlier known as the Unique Identification Project.
Bajaj Hindusthan Ltd rose 1.9% to Rs116 as it said its board had approved a proposal to absorb unit Bajaj Hindusthan Sugar.
Cairn India, an unit of UK’s Cairn Energy, dropped 0.6% to Rs306.65 as crude oil prices softened.
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First Published: Thu, Jun 17 2010. 03 47 PM IST
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