The BSE Sensex rode a global rally in equities and climbed 1 percent on Thursday, with export-driven outsourcer Infosys Technologies and financials leading the rise.There were expectations that upbeat U.S. earnings hopes would give a boost to investor appetite globally, and help draw in more portfolio investments, traders said.Quarterly earnings in India should also show robust growth as the country's trillion-dollar economy is widely expected to expand around 8.5 percent in 2010/11 from 7.4 percent in the past year.The 30-share BSE index closed up 1.03 percent, or 180.70 points, at 17,651.73, with 24 of its components advancing.Any pick-up in foreign buying, which has slowed to $99 million in the first four sessions of July from $2.1 billion June 1-29, will be a key driver for the index that is down 0.3 percent so far this month."From the long-term perspective, better monsoon and reforms by the government are definitely hinting to growth for Indian stocks," said Gajendra Nagpal, CEO of Unicon Financial."But from a short-term view, things are uncertain. It all depends on global cues."Annual monsoon rains have covered the entire country, the weather office said this week, raising the outlook for farm output and rural incomes, both vital to push economic growth in India that lacks proper irrigation.Food prices eased in late June but fuel inflation accelerated keeping the case for the central bank to maintain a hawkish stance at its policy meet on July 27.However, investors shrugged off hardening interest rates and bought banks betting on their long-term outlook.Top lender State Bank of India rose 2.3 percent while rivals ICICI Bank and HDFC Bank gained 1.9 percent and 0.3 percent respectively.Infosys, which releases quarterly result on Tuesday, climbed 1.6 percent on improving outlook hopes."The results are likely to be good. Rupee was also fairly benign in the quarter," Nagpal said.Rivals Tata Consultancy Services and Wipro were up 1.7 percent and 0.6 percent respectively.Advancing shares outnumbered declining ones in the ratio of 1.5:1 in the broader market on relatively better volume of 432 million shares.The 50-share NSE index rose 1.1 percent to 5,296.85.Brokerage Prabhudas Lilladher expects quarterly revenue and profit after tax of the companies in the broader index to grow by 30.4 percent and 37.2 percent respectively."However, since the recovery in earnings really started from Q2FY10, we fear that the current quarterly growth is a near-term peak as the base effect starts wearing off," it said in a note.Metal producers rallied as LME and Shanghai base metals gained cheering the rally in global equities.Non-ferrous metals maker Sterlite Industries firmed 3.6 percent, while aluminium producer Hindalco rose 2.1 percent.Tata Steel, the world's eighth-largest producer of the alloy, gained nearly 2 percent.Auto firms rose after an industry body forecast a 12-13 percent rise in car sales for 2010/11 after posting a near 31 percent rise in sales in June.Leading car maker Maruti Suzuki climbed 1.5percent, truck, bus and car maker Tata Motors rose 0.7 percent and utility vehicles and tractor maker Mahindra & Mahindra gained 0.3 percent.Bharti Airtel gained 1.7 percent after the top mobile operator said late on Wednesday it would invest $600 million in Nigeria over the next three years, half within the next 12 months.The MSCI world equity index was up 0.6 percent by 1029 GMT. The Thomson Reuters global stock index rose 0.7 percent.STOCKS THAT MOVED* Infrastructure Development Finance Co rose 1.3 percent to 181.40 rupees after the Economic Times reported the company would raise 8.4 billion rupees by selling convertible securities to Malaysian state fund Khazanah and private equity firm Actis.* Oil explorer Cairn India rose 1.5 percent to 301 rupees as crude oil prices rose to $75 per barrel.MAIN TOP THREE BY VOLUME* Shree Ashtavinayak on 22.3 million shares* IFCI on 8.3 million shares* Jindal Cotex on 4.1 million shares(Editing by Ranjit Gangadharan)News posted by www.newsinfoline.com
Click here to read more news from www.newsinfoline.com
Please follow our blogs
newsinfolinephotogallery
prabugallery
newsinfolinephotogallery1
photogallery1
No comments:
Post a Comment