MUMBAI, July 23 (Reuters) – Indian shares rose to their
highest level in two-and-a-half years on Friday, bouyed by a
rally in world equities and better-than-expected quarterly
earnings by outsourcer Wipro (WIPR.BO).
Export-driven software services companies were among the
gainers after Wipro posted a 31 percent rise in quarterly
profit said it was seeing strong business environment.
Wipro rose as much as 4.2 percent to 433 rupees. If it
rises past 451.80, it would be the highest level in a decade,
data from Thomson Reuters showed.
“For the IT sector, demand environment is good. Also,
pricing scene is stable and improving,” said Deven Choksey,
managing director and CEO of KR Choksey Shares.
He expects a 15-20 percent upside for tier-I IT stocks.
Bigger rivals Tata Consultancy Services (TCS.BO) rose as
much as 0.9 percent to a record high of 850 rupees, while
Infosys Technologies (INFY.BO) was up 0.6 percent.
By 11:12 a.m. (0542 GMT), the 30-share BSE index .BSESN
was trading up 0.32 percent at 18,171 points — after hitting
18,237.56, its highest level since February 2008.
Eighteen of its components were trading in the green.
In the broader market, gainers led losers in a ratio of
1.3:1 on volume of 139 million shares.
Foreign funds have poured $8.8 billion into Indian equities
this year, driving the benchmark index up more than 4 percent.
In 2009, they had bought a record $17.5 billion of stocks and
helped power an 81 percent rally.
Asian stocks rose as strong earnings from economic
bellwethers such as Caterpillar (CAT.N) tempered concerns about
a global slowdown. [MKTS/GLOB]
“Global cues will remain uncertain for a while. But a lot
of corrective measures which are taken, will prevent the
economies from going down under,” said Choksey.
The 50-share NSE index was up 0.3 percent at
Brokerage Sharekhan said the hourly momentum indicator
showed an upside was gaining strength.
Top-listed biotechnology firm Biocon (BION.BO) slipped 1.3
percent after it reported a lower-than-expected 33 percent
Energy giant Reliance Industries (RELI.BO), which has the
highest weight on the Sensex, climbed 0.3 percent to 1,062
Cigarette-to-hotel group ITC (ITC.BO) added 0.7 percent
after rising 1.6 percent on Thursday following a 22 percent
rise in quarterly profit. [ID:nBMA008051]
STOCKS ON THE MOVE
* Credit rating firm Crisil (CRSL.BO) was down 2.8 percent
at 5,700 rupees, after the unit of Standard & Poor’s Corp said
late on Thursday its net profit fell 13 percent. [ID:nWNBS0573]
* Dr Reddy’s Laboratories (REDY.BO) shed 1.3 percent to
1,363.10 rupees, extending losses after the drugmaker said on
Thursday consolidated quarterly profit fell a
more-than-expected 14.3 percent following a drop in sales in
its key U.S. market. [ID:nSGE66L0K3]
* JSW Steel (JSTL.BO) was up nearly 1 percent at 1,213
rupees, after a report said JFE Holdings Inc (5411.T), Japan’s
second-biggest steelmaker, plans to invest about $1 billion in
the Indian firm. [ID:nTOE66M038]
MAIN TOP THREE BY VOLUME
* NHPC (NHPC.BO) on 4.7 million shares
* Shree Ashtavinayak (SACV.BO) on 4.7 million shares
* IFCI (IFCI.BO) on 3.3 million shares
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
* Indian bond report
* Euro steadies vs dollar before stress test results
* Oil slips from 11-week high on demand uncertainty
* Asia stocks up, euro firm, eyes stress tests
* Earnings lift Wall St, but Amazon.com plunges
* For closing rates of Indian ADRs