MUMBAI, July 20 (Reuters) – Indian shares rose 0.3 percent
on Tuesday led by gains in energy major Reliance Industries
(RELI.BO) and construction conglomerate Larsen & Toubro
(LART.BO), with mostly firmer Asian markets helping.
However, investors were cautious with a drop in U.S.
housing data showing cracks in the recovery of the world’s
largest economy.
Traders were watching foreign funds, who have moved $8.6
billion into Indian equities this year, for direction amid
concern a slower than expected global recovery could affect the
inflows.
By 11:11 a.m. (0541 GMT), the 30-share BSE index .BSESN was
trading up 0.34 percent at 17,989.12, with 19 of its components
gaining.
In the broader market, gainers were almost double the
number losers while 131 million shares changed hands.
“We are trading higher today looking at the strength in
Asian stocks,” said Kunal Sukhani, manager of institutional
equities at Asian Markets Securities.
The MSCI’s measure of Asian markets other than Japan
.MIAPJ0000PUS was up 1.3 percent, while Japan’s Nikkei
.N225 shed 1.2 percent.
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The BSE index is up 3 percent so far this year on the back
of rebounding domestic economy, while most of its emerging
market peers have dropped.
Reliance Industries, which has the highest weight on the
main index .BSESN, climbed 0.6 percent to 1,062.50 rupees,
while Larsen & Toubro rose 1.1 percent to 1,912.80 rupees.
Sukhani said quarterly earnings would be the key driver for
the market in the near term.
HDFC Bank (HDBK.BO) was up 0.2 percent at 2,055.25 rupees,
a day after the private-sector lender reported its strongest
profit growth in more than a year and highlighted more gains
for the booming industry on robust loan demand. [ID:nSGE66I0EL]
“Quality of earnings continues to improve on the back of
margin expansion, loan book growth, and provisioning pressure,”
Edelweiss said in a note.
“We continue to like the bank’s attractive franchisee and
overall improvement in metrics.”
The stock is just 2.6 percent of its record high hit last
week.
Iron ore exporter Sesa Goa (SESA.BO) rose 1.6 percent after
its consolidated net profit for the June quarter trebled.
[ID:nSGE66J05M]
The share was also helped after a senior government
official told Reuters on Monday India had no plans to curb iron
ore exports. [ID:nSGE66I0EY]
Tata Steel (TISC.BO), the world’s seventh-largest producer
of the alloy, and rose non-ferrous metals producer Sterlite
Industries (STRL.BO) rose 1.1 percent each, while aluminium
maker Hindalco (HALC.BO) gained 0.9 percent.
The sector was supported by gains in regional peers. The
resources index for Asian shares other than Japan
.MIAPJMT00PUS was up nearly 2 percent.
The 50-share NSE index , or Nifty, was up 0.3
percent at 5,402.40.
“We see Nifty to be rangebound between 5,300-5,450 in the
near term due to mixed cues from overseas,” Sukhani said.
STOCKS ON THE MOVE
* MindTree (MINT.BO) shed 5.2 percent to 539 rupees after
its quarterly results disappointed investors, dealers said.
[ID:nWNBS0515]
* Cairn India (CAIL.BO), a unit of Cairn Energy (CNE.L),
was up 0.3 percent at 316.15 rupees as crude oil prices rose
toward $77 a barrel.
MAIN TOP THREE BY VOLUME
* IFCI (IFCI.BO) on 3.3 million shares
* Ramsarup Industries (RASW.BO) on 1.6 million shares
* Unitech (UNTE.BO) on 1.6 million shares
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report [INR/]
* Indian bond report [IN/]
* Dollar hovers near lows, eyes on Japan policymakers [FRX/]
* Oil gains towards $77 on expected U.S. inventory drop [O/R]
* Asia shares rise, yen strength in focus [MKTS/GLOB]
* Wall St up on tech, but IBM, TI fall after the bell [.N]
* For closing rates of Indian ADRs INADR