Markets end 0.4% up on European gains3 min read . Updated: 15 Jun 2010, 04:33 PM IST
Markets end 0.4% up on European gains
Markets end 0.4% up on European gains
Mumbai: Indian shares climbed for a fifth session on Tuesday in their longest winning streak in two months, after higher advance taxes paid by companies signaled robust earnings growth and helped lift investor sentiment.
The market had started shakily after Moody’s downgrade of Greece’s debt to junk status revived concerns about foreign fund flows.
Reliance Communications jumped as much as 5.2% after the No. 2 Indian mobile operator’s board approved a proposal to bring investors into its telecoms tower arm.
The 30-share BSE index climbed 0.43%, or 74.66 points, to 17,412.83, its best close since April 30. It has risen 4.8 percent over five days. The 50-share NSE index climbed 0.5% to 5,222.35.
Twenty-one of its components closed in the green.
“Advance tax numbers which have come out so far are mostly better than a year ago," Vaibhav Sanghavi, director of Ambit Capital, said.
A government source told Reuters the June quarter tax paid by Bajaj Auto, the country’s second-largest motorcycle maker, was more than double the year ago, while refiner Hindustan Petroleum payment quadrupled.
Last week, official data had showed April factory output expanded an annual 17.6% with manufacturing growth matching its fastest pace in at least 15 years.
The government on Tuesday approved stake sales in state-run miners Coal India and Hindustan Copper that between them could be worth up to $3.7 billion, putting the country on track for its biggest IPO ever.
Hindustan Copper rose as much as 14.3% after the announcement and ended up 9.1% at Rs513.35.
“One thing is very clear that the government is going ahead with its divestment agenda without any significant delay, and that’s good news for the market," said Neeraj Dewan, director of Quantum Securities.
Reliance Communications closed up 4.3% at 186.65 rupees after rising as high as 188.30 rupees as its plan to open up the telecoms tower unit to investors signaled the ammunition it can tap to cut its huge debt in a fiercely competitive market.
The Economic Times reported on Tuesday American Tower, a consortium of private equity firm Blackstone and Crown Castle International, and India’s GTL were among suitors for Reliance’s tower unit.
Short-covering helped metal makers catch up with the recent underperformance compared with the broader market, dealers said.
The sector index rose 1.4% but was still down 15.7% since the start of May.
Non-ferrous metals producer Sterlite Industries and aluminium producer Hindalco climbed 3.4% and 1% respectively. Tata steel, the world’s eighth-largest steel maker by output, rose 1.4%.
Software firms eased on profit-taking. The sector index shed 0.5% after rising nearly 5% in three previous sessions. Top outsourcer Tata Consultancy Services dropped 1.9% while rival Infosys shed 0.4%.
State-run oil firms fell as television channel CNBC TV-18 reported a meeting of panel of ministers to review fuel pricing has been postponed indefinitely.
Explorer Oil and Natural Gas Corp dropped 2.6%, while oil marketing companies Bharat Petroleum Corp, Hindustan Petroleum Corp and Indian Oil Corp fell between 5.1% and 6.4%.
In the broader market, gainers outpaced losers in a ratio of 1.4:1 on a relatively better volume of 429 million shares.
MMTC jumped 20.9% to Rs34,476.60 after the state-run trading firm said it would consider a bonus issue and stock split on 29 June.
Anil Ambani-led Reliance Natural Resources rose 9.8% to Rs66.85 after CNBC-TV18 reported the company was likely to sign a gas deal next week with Reliance Industries.
Mahindra Satyam fell 2% to Rs87.10 after the IT services firm said on Monday it had sought more time from authorities to file financial statements relating to fiscal years 2008 and 2009, delaying its merger with Tech Mahindra.
Tech Mahindra shed nearly 1% to Rs731.95.