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Markets hit 31-month high; Reliance gains

Markets hit 31-month high; Reliance gains
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First Published: Tue, Sep 07 2010. 11 47 AM IST
Updated: Tue, Sep 07 2010. 11 47 AM IST
Mumbai: Indian shares climbed to 31-month highs for the second consecutive day on Tuesday, but traders said the market was vulnerable to a correction amid muted world markets.
Energy major Reliance Industries, which had been an underperformer in recent months, led the gainers.
“It is a stock-specific market right now. Stock rotation is taking place with investors preferring stocks like Tata Motors, Maruti and ICICI Bank which have more headroom.” said Deven Choksey, managing director and CEO of KR Choksey Shares.
“However, some profit booking is not ruled out at such higher levels.”
By 11:22am, the 30-share BSE index was trading up 0.37% at 18,628.33, with two-thirds of its components gaining. It rose as much as 0.5% early to 18,648.69, its highest level since February 2008. The 50-share NSE index was up 0.3% at 5,596.10.
The market has been bolstered by foreign portfolio investments of $13.1 billion so far in 2010, after a record $17.5 billion inflow in 2009.
Automobile makers Tata Motors and Maruti Suzuki were up 1.5% each. Leading private-sector lender ICICI Bank edged 0.4% higher.
Reliance Industries rose 1.5% to 967.25 rupees but the stock with the highest weight on the BSE index is down more than 11% in the year to date, while the benchmark has added 6.7% in the period.
Tata Consultancy Services climbed 1.4% after the Economic Times reported that nationalised Dutch bank ABN AMRO was set to renew contracts worth $1 billion with IBM and Tata Consultancy and Infosys.
Infosys shed 0.5% after rising nearly 3% in the previous two sessions.
In the broader market, gainers outnumbered losers in a ratio of 1.8:1 on volume of 219 million shares.
Elsewhere, the MSCI’s measure of Asian shares other than Japan edged 0.2% lower. US markets were closed on Monday for Labour day.
STOCKS
Hospital operator Fortis Healthcare rose 2% to Rs164.80, extending Monday’s gains after a company official said it was looking to list a real estate investment trust in Singapore in the next six months.
Power transmission contractor KEC International firmed 2.5% to Rs498.50 after it signed a $95 million agreement to acquire SAE Towers Holdings from a unit of US-based private equity firm, Acon Investments.
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First Published: Tue, Sep 07 2010. 11 47 AM IST
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