Markets up 0.3%; Reliance, L&T rise

Markets up 0.3%; Reliance, L&T rise

Mumbai: Indian shares rose 0.3% on Tuesday led by gains in energy major Reliance Industries and construction conglomerate Larsen & Toubro, with mostly firmer Asian markets helping.

However, investors were cautious with a drop in US housing data showing cracks in the recovery of the world’s largest economy.

Traders were watching foreign funds, who have moved $8.6 billion into Indian equities this year, for direction amid concern a slower than expected global recovery could affect the inflows.

By 11:11am, the 30-share BSE index was trading up 0.34% at 17,989.12, with 19 of its components gaining. The 50-share NSE index, or Nifty, was up 0.3% at 5,402.40.

In the broader market, gainers were almost double the number losers while 131 million shares changed hands.

“We are trading higher today looking at the strength in Asian stocks," said Kunal Sukhani, manager of institutional equities at Asian Markets Securities.

The MSCI’s measure of Asian markets other than Japan was up 1.3%, while Japan’s Nikkei shed 1.2%.

The BSE index is up 3% so far this year on the back of rebounding domestic economy, while most of its emerging market peers have dropped.

Reliance Industries, which has the highest weight on the main index, climbed 0.6% to Rs1,062.50, while Larsen & Toubro rose 1.1% to Rs1,912.80. Sukhani said quarterly earnings would be the key driver for the market in the near term.

HDFC Bank was up 0.2% at Rs2,055.25, a day after the private-sector lender reported its strongest profit growth in more than a year and highlighted more gains for the booming industry on robust loan demand. “Quality of earnings continues to improve on the back of margin expansion, loan book growth, and provisioning pressure," Edelweiss said in a note. “We continue to like the bank’s attractive franchisee and overall improvement in metrics." The stock is just 2.6% of its record high hit last week.

Iron ore exporter Sesa Goa rose 1.6% after its consolidated net profit for the June quarter trebled. The share was also helped after a senior government official told Reuters on Monday India had no plans to curb iron ore exports.

Tata Steel, the world’s seventh-largest producer of the alloy, and rose non-ferrous metals producer Sterlite Industries rose 1.1% each, while aluminium maker Hindalco gained 0.9%.

The sector was supported by gains in regional peers. The resources index for Asian shares other than Japan was up nearly 2%.

“We see Nifty to be rangebound between 5,300-5,450 in the near term due to mixed cues from overseas," Sukhani said.


MindTree shed 5.2% to Rs539 after its quarterly results disappointed investors, dealers said.

Cairn India, a unit of Cairn Energy, was up 0.3% at 316.15 rupees as crude oil prices rose toward $77 a barrel.