Indian shares rallied on Monday, mirroring a firm trend across other Asian markets as investors bet that the U.S. Federal Reserve and the European Central Bank may implement further stimulus measures to boost the sagging economies.
The benchmark BSE Sensex is currently up 188 points or 1.12 percent at 17,027, while the broader Nifty index is at 5,154, up 54 points or 1.06 percent from its previous close. Second-line stocks are posting relatively modest gains and the market breadth is extremely positive, with about 2 shares gaining ground for every share that declined on the BSE.
Banking stocks are trading mostly higher ahead of RBI's monetary policy review slated for tomorrow. ICICI Bank is rallying 3.6 percent, HDFC Bank is moving up 0.9 percent and SBI is gaining 1.4 percent. Realtor DLF is up 1.4 percent and automakers such as Mahindra & Mahindra, Hero MotoCorp and Tata Motors are up between half a percent and 1.6 percent.
Bank of Baroda and GAIL (India) are moving up about half a percent each ahead of their first-quarter results due today. Grasim Industries is gaining 0.7 percent despite reporting a 4.5 percent drop in first-quarter consolidated net profit.
Nestle India is adding 1.1 percent on solid Q2 results. HDFC is up 0.4 percent after posting a 25 percent rise in first-quarter consolidated net profit. Tata Steel is moving up 1.5 percent as the company denied media reports that it is considering merging Tata Sponge Iron and The Tinplate Company of India with itself.
Mahindra Satyam is up marginally after settling a lawsuit in the United States. Crompton Greaves is gaining 1.1 percent after acquiring ZIV, a global leader in the high value Smart Grid and automation Solutions segments for industrial and utilities companies, for an enterprise value equivalent to Euro 150 million.
Suzlon Energy is adding 1.5 percent after redeeming FCCB bonds worth $360 million. Energy giant Reliance Industries is up 0.4 percent on reports it will invest close to $1 billion over the next few years in its new aerospace division.
Dr.Reddy's Laboratories is down marginally after the U.S. drug regulator lifted a ban on its manufacturing unit in Mexico. Maruti Suzuki is losing 1.5 percent as the country's largest automaker posted a 23 percent drop in quarterly profit, hit by adverse currency movements and higher overall expenses.
Tata Power is moving up 1.3 percent. The company has decided to focus on overseas opportunities to maximise returns and minimise risks, according to a PTI report. United Spirits is climbing 2.6 percent after posting a modest 5 percent rise in its June-quarter net profit.
Mercator is up 0.3 percent as the company said it has subscribed fully to the issue of convertible bonds aggregating $19 million of its listed Singapore subsidiary Mercator Lines.
Indian stocks fell sharply last week, with benchmark indexes Sensex and the Nifty falling about 2 percent each, as FIIs turned net sellers on fears over the murky global economic outlook and a worsening domestic economic scenario.
by RTT Staff Writer
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