Markets rise as financials lead gains

Markets rise as financials lead gains

Mumbai: Indian shares rose more than 1% on Thursday morning, supported by stronger Asian markets and powered by gains in financial stocks on expectations they will prosper in a growing economy.

Private-sector lenders ICICI Bank and HDFC Bank climbed 2.8% and 1.8% respectively, and top lender State Bank of India firmed 1.2%.

Mortgage lender Housing Development Finance Corp rose 1.5%.

At 10:25am, the 30-share BSE Index was up 1.38% at 16,142.46, with 29 components rising. The 50-share NSE index was up 1.3% at 4,820.

The market had dropped 0.8% on Wednesday.

“It seems like yesterday’s fall was a bit overdone. We are rising today, on the back of rise in Asian equities," said Kunal Sukhani, manager of institutional equities at Asian Markets Securities.

“Technically, if we rise above 16,200, the market can even test 16,500-16,700 levels," he added.

Asian stocks were trading higher, powered by strong economic data from Australia and China. The MSCI’s measure of Asian markets other than Japan was up 1.6%, while Japanese markets were closed for a public holiday.

Export-focused software companies rose, supported by a view that a recovering global economy would be good for business.

Sector leader Tata Consultancy Services rose 1.7% to Rs744.50. A senior company official said on Wednesday it would hire 30,000 staff in 2010/11 on hopes of increase in demand.

Infosys Technologies and Wipro rose 1.4% and 1.7% respectively.

In the broader market, gainers outnumbered losers by nearly 3:1 on a volume of 106 million shares.