Mumbai: Indian shares rose on Monday to their highest level since February 2008, with financials leading the gains, lifted by strong Asian markets.
At 11:53am, the 30-share BSE index was up 1.4% at 18,467.27 points, with 27 components advancing. It rose to as much as 18.478.76, its highest level in 31 months. The 50-share NSE index was up 1.4 percent at 5,554. (Reporting by
Markets climbed more than 1% after a flicker of optimism about the health of the US economy lifted markets across Asia. Financials led the gainers on hopes rising demand for loans will boost their earnings as the domestic economy expands at a fast clip.
Leading car maker Maruti climbed 1.1% after its parent, Japan’s Suzuki Motor Co, said it would build its fourth plant in India boosting output to 1.5 million units a year.
By 11:06am, the 30-share BSE index was trading up 1.11% at 18,424.12 points, with 26 of its components gaining. The 50-share NSE index was up 1.1% at 5,541.50.
Improving appetite for Indian stocks among foreign funds underpinned the rise, traders said.
“Liquidity flow is keeping markets upbeat. Valuations seem to be ignored,” said Kunal Sukhani, manager of institutional equities at Asian Markets Securities. “As long as money is flowing into the markets, there should not be any major problem.”
Data from Nomura showed foreigners preferred Indian shares amongst Asian equities in the week to 3 September, and invested $311 million. The benchmark index added 1.2% last week.
GTL Infrastructure slid as much as 5.9% after it said its deal with second-largest mobile operator Reliance Communications to merge their telecoms tower businesses would not take place.
Reliance Communications shares edged 0.2% lower, but trading was choppy.
Top lender State Bank of India climbed 0.7% while rivals ICICI Bank and HDFC Bank rose 1.4% and 0.9% respectively. Leading mortgage lender Housing Development Finance Corp firmed 1.3%.
Outsourcers that get most of their revenue from the United States rose after the better-than-expected US jobs data on Friday.
Sector leader Tata Consultancy Services rose 1.1%, while Infosys Technologies and Wipro firmed 1.7% and 0.6% respectively.
Aluminium maker Hindalco Industries rose 3.4% after its chairman said on Friday the company plans spend $2.1 billion in the current financial year ending in March.
In the broader market, gainers were more than thrice the number of losers on volume of 188 million shares.
Drugmaker Aurobindo Pharma was up 2.2% at Rs1,067.95, after it signed licensing and supply agreements with AstraZeneca to supply finished dosage products to emerging markets.
IT services firm Persistent Systems gained 2.1% to Rs454.25, after BNP Paribas initiated coverage on the stock with a “buy” rating.