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Markets rise 1.6%; Tata Motors, Hindalco gain

Markets rise 1.6%; Tata Motors, Hindalco gain
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First Published: Mon, Oct 10 2011. 12 28 PM IST
Updated: Mon, Oct 10 2011. 12 28 PM IST
Mumbai: Markets rose 1.6% on Monday as risk sentiment improved globally after euro zone leaders pledged to unveil a plan to solve the region’s sovereign debt crisis by the end of the month.
At 11:50am, the main 30-share BSE index was up 1.58% at 16,487.40, with 26 of its components rising. It has briefly turned negative in early trades.
However, investors were cautious ahead of the domestic quarterly earnings season that starts this week and a new telecom policy due to be announced later in the day.
“Markets have already run up and there are no fresh triggers that markets are looking forward to. So, I don’t think markets will have significant upside from the current level,” said Gajendra Nagpal, chief executive officer, Unicon Financial Intermediaries.
Tata Motors was the top gainer on hopes of better retail sales from its Jaguar Land Rover unit, traders said. Separately, a news report said the company’s British unit and Chery Automobile are seeking regulatory approval to set up a joint venture in China. Tata Motors was up 5.2% at 167.55 rupees.
Non-ferrous metals firm Hindalco gained as much as 3.2% after J.P. Morgan upgraded it to “overweight” from “neutral,” citing stock under performance versus peers in 2011.
Software services bellwether Infosys Ltd rose as much as 2.2%. It is expected to report earnings growth of 8.9% for the three months ended September, according to a Reuters poll. However, some analysts expect the company will cut its 2011/12 dollar revenue growth target as demand tapers.
Shares of Bharti Airtel , India’s top mobile phone carrier, were up 1.6% and rival Reliance Communications was 0.7% higher. They fell as much as 3.2 and 1.8%, respectively, earlier in the session.
The new telecom policy is expected to include revised rules on grant and pricing of second-generation radio airwaves, to make the sector more transparent after it was hit by a massive scandal.
“One doesn’t know what is the fine print there, but expectation is...there may be no charge on roaming so it’s going to be making life more difficult for telecom companies,” Nagpal said.
Financial firm Reliance Capital rose as much as 4.4% after it said on Sunday it received $680 million from its 26% stake sale in its insurance business to Nippon Life.
Reliance Industries , the country’s largest listed firm, gained as much as 2.7%. A Financial Times report said it is set to sign a deal with the Indian unit of Walt Disney to acquire content for its telecom operations.
The MSCI’s broadest index of Asia Pacific shares outside Japan was up 0.36%.
The 50-share NSE index gained 1.11% to 4,942.30. In the broader market, there were 2.4 gainers for every loser on total volume of about 231 million shares.
“Eventually selling pressure will come back and probably the Nifty cannot go beyond 5,000-5,050 levels,” said Jagannadham Thunuguntla, head of research, SMC Investments and Advisors Limited.
STOCKS
Unichem Laboratories gained as much as 2.9% after it received approval from the US Food and Drugs Administration for lamotrigine tablets to treat epileptic seizures.
UTV Software Communications gained as much as 1.2% after it said it
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First Published: Mon, Oct 10 2011. 12 28 PM IST
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