Mumbai: Shares on Monday were trading 1.3% higher on strong foreign fund inflows and firm Asian peers, with energy giant Reliance Industries leading the charge.
Shares in Wipro, the country’s third-largest outsourcer, bucked the trend and fell as much as nearly 3% after Credit Suisse downgraded the stock to neutral from outperform.
“We were pretty surprised by the weak revenues, as peers have been rather bullish,” Credit Suisse said in a note.
At 11:38am, the 30-share BSE index was up 1.31% at 20,428.95 points, with 29 of its components advancing.
“The good subscription to the Coal India IPO (initial public offering) has shown a lot of confidence in the strength of the market. The refund money will start coming in this week too,” said R.K. Gupta, managing director of Taurus Mutual Fund.
Coal India’s $3.5 billion IPO, the country’s largest, was more than 15 times covered by close last Thursday, giving the government power to price at the top end of Rs225-245 range and building momentum for other state offers.
The world’s largest coal miner would begin to refund excess subscriptions for the IPO, which had an institutional order book of about $27 billion powered by foreign funds, by late October or early November. “Barring a few exceptions, (corporate) earnings have largely been good,” said Gupta.
The benchmark index is up 17% so far this year, as foreign funds have pumped in nearly $24 billion in Indian stocks.
Reliance Industries, which has the highest weight on the Sensex, rose as much as 1.8% to Rs1,101, its highest level in more than six months.
The stock, has lagged the broader market rally for the year to date, and is up only 0.9% in 2010.
Tata Motors raced 2.1% after the Wall Street Journal reported the vehicle maker’s Jaguar Land Rover is in talks with a Chinese automaker to establish a manufacturing and sales joint venture in China.
Dr Reddy’s Laboratories Ltd was up 1.5% after the No. 2 drugmaker by sales reported on Saturday a 32-% jump in quarterly net profit, topping estimates.
Hindustan Unilever, the country’s largest household products and consumer goods maker was trading 1.8% higher ahead of its September-quarter results.
In the broader market, gainers were more than twice the number of loser on a volume of 187 million shares.
The 50-share NSE index was up 1.3% at 6,144.80 points.
Elsewhere, the MSCI’s measure of Asian markets other than Japan was up 1.8%, while Japan’s Nikkei shed 0.3%.
Piramal Healthcare was down 4.4% at Rs492.75 after the drugmaker said last week it planned to buy back up to 20% equity at 600 rupees a share.
OnMobile Global was up 1.7% at Rs375 as the mobile content provider said its July-September net profit more than doubled.
Mahindra & Mahindra Financial Services was up 6.5% to Rs697 after the financial services provider reported a strong quarter driven by robust disbursements and containing interest cost.