MUMBAI, July 19 (Reuters) – Indian shares clawed back from
a shaky start on Monday as hopes for strong domestic economic
growth and earnings helped overcome weak global sentiment
caused by subdued U.S. economic data.
Reliance Communications (RLCM.BO) rallied as much as 3.9
percent after Financials Times reported Emirates
Telecommunications Corp ETEL.AD (Etisalat) was close to
buying a 26 percent stake in the No. 2 Indian telecoms firm.
Private-sector lender HDFC Bank (HDBK.BO) was up 0.7
percent ahead of its quarterly earnings.
By 11:03 a.m. (0533 GMT), the 30-share BSE index .BSESN
was trading up 0.22 percent at 17,994.71, with 17 of its
components gaining. The benchmark had fallen as much as 0.6
percent in early trade.
In comparison, the MSCI’s broader measure of Asian markers
other than Japan .MIAPJ0000PUS and world equities
.MIWD00000PUS were down 1.1 percent and 0.3 percent
“India is definitely a better bet versus other investment
targets,” said Rajen Shah, chief investment officer at Angel
“The economic growth in our country is robust. Also, we are
not so export-dependent as other emerging economies. Earnings
optimism is also helping,” he said.
The BSE index is up 3 percent in the year to date. Its
emerging market peers China’s Shanghai Composite Index .SSEC
and Brazil’s Bovespa .BVSP have fallen 25 percent and 9.1
percent since the start of 2010.
The rise in Indian shares has been powered by foreign
portfolio inflows of $8.4 billion so far in 2010, adding to
last year’s record purchases of $17.5 billion.
Export-driven software majors dropped on concerns
disappointing economic data from the United States, their
biggest market, could affect outsourcing orders.
Sector leader Tata Consultancy Services (TCS.BO) was down
0.9 percent, while rivals Infosys Technologies (INFY.BO) and
Wipro (WIPR.BO) shed 0.8 percent and 0.2 percent respectively.
Energy giant Reliance Industries (RELI.BO), which has the
highest weight on the Sensex, was up 0.2 percent.
The Daily News & Analysis newspaper reported Reliance was
in talks with Texas-based Quicksilver Resources (KWK.N),
including for a possible buyout of the U.S. firm that develops
shale gas and coal-bed methane. [ID:nSGE66I03L]
In the broader market, gainers outnumbered losers in a
ratio of 1.7:1 on volume of 112 million shares.
The 50-share NSE index was up 0.2 percent at 5,407.
STOCKS ON THE MOVE
* Steelmaker Tata Steel (TISC.BO) was up 0.4 percent at
511.40 rupees as UBS upgraded the stock to “buy” from “neutral”
over the weekend.
* Sun Pharmaceutical (SUN.BO) was down 1.5 percent at
1,713.05 rupees after the drugmaker said a U.S. court had
denied its motion to reverse a jury verdict of infringement
against the Indian firm on Pfizer’s (PFE.N) Protonix acid
reflux drug patent that the jury had said was valid.
MAIN TOP THREE BY VOLUME
* IFCI (IFCI.BO) on 4.5 million shares
* Development Credit Bank (DCBA.BO) on 3.5 million shares
* Shree Ashtavinayak (SACV.BO) on 2.5 million shares
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report [INR/]
* Indian bond report [IN/]
* Euro dips, pulls away from 2-month high [FRX/]
* Oil falls below $76 as poor U.S. data fans econ fears [O/R]
* Asia stocks slide as US growth fears escalate [MKTS/GLOB]
* Wall St dives on weak consumer sentiment and revenues [.N]
* For closing rates of Indian ADRs INADR
(Reporting by Ami Shah; Editing by Ranjit Gangadharan)