Noon: Stocks up on global rally; Reliance leads

Noon: Stocks up on global rally; Reliance leads

Mumbai: Indian shares rose more than 2% on Wednesday, led by Reliance Industries and Infosys Technologies, pulling back some of the steep losses marked in the previous week.

Sentiment was helped by comments from the finance minister who said fiscal stimulus will be maintained and as world markets edged higher.

By 12:16am, the 30-share BSE Index was trading up 336.40 points at 15741.34 points, with 27 of its components gaining. It fell 8.4% over the past six previous sessions. The 50-share NSE index was up 95 points at 4658.90.

“It is a technical bounce back after the recent fall. 4,700 (Nifty) level is an important resistance level," D.D. Sharma, senior vice president of Anand Rathi Securities.

“Finance minister’s comments fiscal stimulus will be maintained and positive sentiment in Asian markets also helped pull our market up," added Sharma.

The benchmark is still up more than 63% so far in 2009, with foreign funds infusing more than $14 billion in Indian equities.

Finance minister Pranab Mukherjee said late on Tuesday the government will maintain its fiscal stimulus due to uncertainty arising from a poor monsoon and the global outlook, as data showed the summer crop could post a bigger-than-expected fall.

Energy giant Reliance Industries rose 3.6% to Rs1,885.80, after it shed 5.7% on Tuesday.

Second-largest software services exporter Infosys Technologies climbed 4% to Rs2,225.

Engineering and construction firm Jaiprakash Associates rose 5.9% to Rs205.85 after it said cement shipments in October rose 41.3% from a year earlier to 0.816 million tonnes.

Around 115 million shares changed hands on the Bombay Stock Exchange, with gainers outpacing losers the ratio of 1.4:1.