Mumbai: Indian shares were trading 0.7% higher on Wednesday, helped by gains in Asian markets, with financials leading the rise.
Financials marched ahead on expectations of better loan demand as the world’s second-fastest growing major economy expands further.
Data on Tuesday showed India’s economy grew at its fastest pace in nearly three years in the April-June quarter on strong manufacturing growth and better farm output.
By 10:43am, the 30-share BSE Index was trading up 0.68% at 18,092.62 points, with 26 of its components gaining.
“Our market is up tracking world markets and also the robust domestic consumption makes it lucrative,” said Gajendra Nagpal, CEO of Unicon Financial, referring to strong auto sales numbers.
“A correction from here is not ruled out as we have outperformed other markets. But, that should be looked as an opportunity to buy.”
The benchmark index is up 3.6% in 2010, boosted by foreign fund inflows of $12.8 billion in Indian equities.
Top lender State Bank of India firmed 0.6% and leading private lenders ICICI Bank and HDFC Bank rose 1.2% and 0.8% respectively. Mortgage lender Housing Development Finance Corp climbed 0.5%.
Energy giant Reliance Industries, which has the highest weight on the Sensex, rebounded 1% after sliding more than 3% in the previous session on EIH stake buy.
Top mobile operator Bharti Airtel rose 2.1% ahead of its annual shareholders meet in the day.
Top car maker Maruti Suzuki raced 1.4% after it said its August vehicle sales rose 24%. Other automobile companies gained on expectations of robust sales numbers for August. Tata Motors and Mahindra and Mahindra were up 0.5% and 1.2% respectively. Hero Honda bucked the trend and slipped 0.7%.
Kingfisher Airlines was up 2.4% after the carrier’s board approved raising up to $1 billion through various means including rights issue, preferential issue or global depositary receipts.
In the broader market, gainers were nearly four times the losers, while 107 million shares changed hands on the BSE.
The 50-share NSE index was up 0.6% at 5,437 points.
Asian stocks rose as investors cheered a manufacturing rebound in China and stronger-than-expected growth in Australia, with the MSCI index of Asia Pacific stocks outside Japan 1.5%.
Metal producers such as Tata Steel, Hindalco and Sterlite Industries rose between 1.2% and 2.4% as base metal prices rallied in Shanghai.
Sun Pharmaceutical slipped 0.7% to Rs1,748 after the drugmaker late Tuesday said US FDA has warned its US unit about manufacturing problems uncovered at a plant in New Jersey.
TVS Motor was up 2.2% at Rs145.15, as the vehicle maker said its August sakes were up 34% on year.