Indian shares edged up modestly on Wednesday, tracking positive Asian cues as investors bet on Fed action to rejuvenate the U.S. economy and restore investor confidence rattled by Europe's debt woes.
The benchmark BSE Sensex is up a modest 0.1 percent, while the broader Nifty index is rising 0.2 percent. Second-line stocks are outperforming, with the BSE mid-cap and small-cap indexes gaining about half a percent each.
Elsewhere, key benchmark indexes in Australia, Hong Kong, Japan and South Korea are rising between 0.3 percent and 0.9 percent, while China's Shanghai Composite index is down 0.1 percent and New Zealand's NZX-50 index is retreating 0.9 percent.
In stock-specific action, divestment candidates NMDC and BHEL are rising 2.1 percent and 1.5 percent, respectively. GMR Infrastructure is adding a percent after its board allotted 1,000 secured non-convertible debentures to ICICI Bank.
Infrastructure stocks are gaining ground after G20 nations, comprising the world's leading and emerging economies, agreed to focus heavily on infrastructure investment in developing countries as a way to stimulate global growth. NCC is up 1.4 percent, GVK Power is rising 2.5 percent and Pratibha Industries is up almost 4 percent.
Educomp Solutions is climbing 8.4 percent as it tied up $155 million to pay off FCCBs on due date. Carborundum Universal is gaining a percent after it entered into a binding agreement to acquire Austrian company RHI's wholly-owned fused minerals subsidiary RHI Isithebe.
Mahindra Satyam is up half a percent after opening a delivery centre in North America. Jindal Steel & Power is rallying 2.2 percent on reports that it may exit the race to buy Australian coal explorer Rocklands Richfield.
Telecom stocks are retreating after Vodafone slashed 3G tariffs by up to 80 percent following similar moves from competitors recently. Bharti Airtel is down 0.8 percent, Idea Cellular is losing half a percent and Reliance Communication is declining 0.4 percent.
Cement makers like ACC, Ambuja Cement and UltraTech are down 1-2 percent on reports of alleged cartelisation. DLF is losing 0.7 percent on reports that it is close to selling wind power business for around Rs.1,000 crore.
Indian shares rose sharply on Tuesday, as bargain hunters stepped in following the previous session's steep sell-off on disappointment over RBI's monetary policy stance. Benchmark indexes Sensex and the Nifty rose about 0.9 percent and 0.8 percent, respectively, on expectations the government will speed up economic reforms.
by RTT Staff Writer
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