MUMBAI, April 5 (Reuters) – Indian shares on Monday ended
up 1.4 percent at their highest close since February 2008,
propelled by gains in their Asian peers. Energy major Reliance
Industries (RELI.BO) and financials topped the gainers.
The 30-share BSE index .BSESN closed 1.37 percent, or
243.06 points, higher at 17,935.68 points, its best close since
Feb. 19, 2008. Twenty three of its components advanced.
Earlier in the session, the benchmark hit a high of
17,948.54 points — its highest since February 2008.
“The news flow has been positive both globally and on the
domestic front,” said R. Ganesh, director of Systematix Shares.
Firm Asian equities underpinned the market after a
three-day weekend, as data showed U.S. employers created jobs
last month at the fastest pace in three years, leading to hopes
of a sustained economic recovery.
Foreign funds have invested around $4.4 billion in Indian
stocks so far this year, of which most of the inflows came in
March.
Indian auto makers rose on the back of robust sales in
March.
Leading motorbike maker Hero Honda (HROH.BO) raced 4.4
percent after March sales climbed 17 percent from a year
earlier, while top vehicles maker Tata Motors (TAMO.BO) rose
0.6 percent on a 38 percent jump in March sales.
[ID:nSGE6300G4] [ID:nSGE63003D]
“Earnings optimism seems to be contained in the price. Any
disappointment there, could lead to a correction,” Ganesh said.
Top listed firm Reliance Industries, which has the highest
weight on the Sensex, gained 2.9 percent to 1,125.15 rupees.
Nomura upgraded the stock to “buy” from “neutral” and said
it expects Reliance’s earnings to grow 44 percent in fiscal
2011, driven by refining and exploration and production (E&P).
“With concerns mostly abating, the focus, in our view,
should now shift to large earnings growth (on a very large
base) and on significant potential E&P upside,” Nomura said in
a note.
Financials rallied as investors ignored near-term inflation
woes and focused on long-term prospects in a growing economy.
Top lender State Bank of India (SBI.BO) climbed 1.6
percent and leading private lenders ICICI Bank (ICBK.BO) and
HDFC Bank (HDBK.BO) rose 2.3 percent and 0.2 percent
respectively.
Top mobile operator Bharti Airtel (BRTI.BO) rose 4.5
percent to 315.60 rupees, as it caught up with gains in the
broader market after underperforming in 2009 and year to date.
Bharti, which was one of the worst performers amongst
Sensex constituents in 2009, is down 4 percent so far in the
year, including Monday’s gains, when the benchmark has gained
2.7 percent.
Software companies that get most of their revenue from
exports, did not participate in the rally, as the rupee rose to
a 19-month high leading to worries it could hit their margins.
Top outsourcer Tata Consultancy Services (TCS.BO) shed 0.6
percent while Wipro (WIPR.BO) closed barely changed.
IT bellwether Infosys Technologies (INFY.BO) erased early
losses and closed nearly 0.1 percent higher.
Last week, median forecasts from 35 foreign exchange
strategists showed the partially convertible rupee INR=
strengthening to 43.53 against the dollar by March 2011, due to
surging flows of funds. [ID:nLDE62T0LF]
Foreign funds have invested around $4.4 billion in Indian
stocks so far this year, of which most of the inflows came in
March.
In the broader market, more than three shares advanced for
every share that declined. Around 481 million shares changed
hands on the BSE, better than that in the previous session.
The 50-share NSE index gained 1.5 percent to
5,368.40 points.