|
Mumbai: Indian shares rose 1.57 per cent on Monday to their highest close since February 29, led by banking stocks which shrugged off a rise in reserve requirements, with gains in overseas market also boosting sentiment.
Leading private bank ICICI Bank rose 3.4 per cent to Rs854.20, State Bank of India gained 3.5 per cent to Rs1,741.20 and HDFC Bank rose 3.5 per cent to Rs1,445.25, with each stock closing at their highest in almost a month.
The sector index rose 3.4 per cent to its highest close since early March on the first trading day since a 50 basis point increase in the cash reserve ratio (CRR) was announced.
The surprise was mostly in the timing of the Reserve Bank's move, as analysts had thought it would wait until its April 29 policy review to announce any changes.
"We are in for better times, a rise in the CRR has not been able to dampen sentiment in the market," said Hitesh Agarwal, head of research at Angel Broking.
"An absence of negative news from the US markets and good corporate results, especially from the technology sector, have helped lifted spirits," he said.
The benchmark BSE 30-share index rose 258.13 points to 16,739.33, its highest close since February 29, with 23 stocks gaining.
The index is down 17.2 per cent this year, but is up 13 per cent from its lowest close for 2008, set on March 17.
"The CRR hike was expected, it just came a tad before the annual policy announcement, and because the banking stocks have already lost a lot of ground, they are unlikely to be beaten further," said V.K. Sharma, head of research at Anagram Stock Broking.
Shares in Tata Steel rose 8.6 per cent to Rs776.80, its highest close in six weeks, on expectations of higher revenues from its European operations, two dealers said. The company had acquired British steelmaker Corus in 2007.
India's biggest listed firm, Reliance Industries, rose 0.2 per cent to Rs2,642.15, ahead of reporting its earnings. It is forecast to report a 31 per cent rise in net profit helped by robust refining margins, a Reuters poll showed.
In the broader market 2,052 gainers beat 673 losers on volume of 385 million shares.
The 50-share NSE index rose 1.59 per cent at 5,037.00, its highest close since February 29.
Debutant Titagarh Wagons closed at Rs707.20, 31 per cent above its initial public offer price of Rs540 while Dabur Pharma ended 6.2 per cent higher at Rs73.45 after its founders and other shareholders agreed to sell 73.27 per cent in the company to Fresenius Kabi (Singapore) at Rs76.50 a share.
Cinema operator Pyramid Saimira rose 2.2 per cent to Rs350.70 on plans to invest close to Rs4 billion in the current fiscal year in its joint venture with the China Society Music Research Board.
Pakistan: Karachi index falls
Pakistan's benchmark Karachi Stock Exchange 100 Index fell, shedding 21.55 points, or 0.14 per cent to 15,654.79 at the 2.30pm local-time close.
Arif Habib Securities, a brokerage, fell Rs2.35, or 1.3 per cent, to 186.15. MCB Bank, the nation's biggest lender by market value, lost Rs3.50, or 0.8 per cent, to 426. Financial companies and bank stocks fell as investors see previous gains on expectations of higher returns of investments were excessive, said Khurram Schehzad, research analyst at Invest Capital & Securities in Karachi. MCB rose 3.3 per cent in the past six trading days while Arif Habib Securities rose 3.4 per cent in the same period.
- Bloomberg
|
