Indian shares rebounded from the previous session's sell-off on Thursday, as a stronger rupee following recent sharp losses and positive cues from Asian markets on the back of positive economic data from the U.S. and Japan triggered a short-covering rally.
Having said that, underlying mood still remains cautious after Greek political leaders announced the formation of a caretaker government to lead the country into its second election next month and the European Central Bank confirmed that it has stopped providing refinancing to some Greek banks as they are severely under-capitalized.
The benchmark 30-share Sensex is currently trading near the day's high at 16,201, up 170 points or 1.06 percent from its previous close, while the broader Nifty index is up 53 points or 1.08 percent at 4,911. FMCG, realty, banking, power and metal stocks are leading the gainers, while IT stocks are subdued.
Tata Motors is edging up 0.3 percent after plunging 7.4 percent the day before on reporting flat global sales data for April. Bajaj Auto is marginally higher ahead of its FY12 results today. Dish TV is climbing 5.7 percent after announcing fourth-quarter earnings results.
Marico is rising 1.4 percent after allotting shares on a preferential basis to Indivest Pte., an affiliate of Government of Singapore Investment Corporation and Baring India Private Equity Fund III Listed Investments.
Bharti Airtel is adding a percent on reports that it is in advanced talks to buy out stake held by the Indian partners in U.S.-based Qualcomm broadband venture in the country.
Other telecom stocks like Reliance Communication and Idea Cellular are gaining 2-3 percent after the Economic Times said telecom regulator TRAI is inclined to reconsider its recommendations on spectrum auction.
Bajaj Finserv is up 1.3 percent while Bajaj Finance is moving down 1.7 percent on fund raising reports. Mahindra Satyam is up 1.7 percent on announcing a services agreement with FirstCarbon.
GMR Infrastructure is climbing 3 percent as it raised Rs. 200 crore through allotment of secured non-convertible debentures to ICICI Bank. IL&FS Engineering is rallying 4 percent on winning a Rs.234 crore rail contract. CESC is up 2.6 percent after it signed a pact with Indiabulls to buy two hydropower projects in Arunachal Pradesh.
Indian shares fell to four month lows on Wednesday, weighed down by capital outflow worries as the rupee tumbled to hit a record low against the dollar, succumbing to growing risk aversion due to the euro zone crisis and amid concerns about India's widening current account and fiscal deficits. The BSE Sensex fell by 300 points or 1.83 percent, while the broader 50-share Nifty index lost 84 points or 1.71 percent.
by RTT Staff Writer
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