Markets rise on strong Asia; Unitech up

Markets rise on strong Asia; Unitech up

Mumbai: Indian shares rose 0.6% on Wednesday, joining Asian peers as signs of a global recovery in corporate earnings lifted investor appetite for riskier assets.

Private-sector lender ICICI Bank, energy major Reliance Industries and construction firm Jaiprakash Associates led the main index higher.

Unitech Ltd, India’s second-largest listed real estate firm, rose 2.5% to Rs85.55 after it said late on Tuesday it would spin off its infrastructure businesses, including its investment in a telecoms firm, into a separate company.

“Good quarterly numbers are supporting the market, and the direction the market takes in coming days will be determined by how good forthcoming results are," Alex Mathews, head of research at Geojit BNP-Paribas Financial Services, said.

“There could be some selling late in the day as foreign funds switch their portfolios amid the quarterly earnings season," he said.

By 10:09am, the 30-share BSE index was up 0.6% at 17,557.66 points, with 28 stocks advancing. The 50-share NSE index was up 0.7% at 5,265.40.

On Tuesday, the benchmark had snapped a 5-day fall as financial stocks led the market higher after the central bank raised rates as expected, and investors hoped policymakers would pursue a gradual tightening without stalling growth.

Investor sentiment worldwide has pricked up on the view that that earnings are showing the global economy is recovering, with big names such as Goldman Sachs and Apple reporting solid results.

Reliance Industries, India’s top listed firm with the most weight in the main index, rose 0.6% to Rs1,070.10.

The energy major should post a second straight increase in quarterly profit on Friday, lifted by higher gas output from fields off India’s east coast and a nascent recovery in refining margins.

ICICI Bank gained 1% to Rs943.35, while Jaiprakash Associates was up 2.4% at Rs150.55.

In the broader market, gainers led losers 4 to 1 on relatively low volume of 99 million shares.

Asian shares on Wednesday mirrored an overnight rise in the United States, with Japan’s Nikkei up 1.5%, while MSCI’s measure of other Asian markets rose 0.9%.