Indian shares rose sharply on Friday, rebounding from two days of losses, after the government notified the rules allowing FDI in retail, aviation, broadcasting and power exchanges, giving effect to a cabinet decision taken last week. Falling oil prices, speculation that price of levy sugar will be increased and reports that the government is considering easing FDI norms for a few other sectors, including pharmaceuticals also helped lift investor sentiment.
The benchmark Sensex is currently trading near the day's high at 18,597, up 248 points or 1.35 percent from its previous close, while the broader Nifty index is up 84 points or 1.51 percent at 5,638. The BSE mid-cap and small-cap indexes are moving up 1.3 percent and 1.1 percent, respectively, and the market breadth is extremely positive, with gainers outpacing declining ones in the ratio of about 3:1 on the BSE.
Elsewhere across Asia, key benchmark indexes in Australia, China, Hong Kong, Japan and South Korea are gaining between 0.3 percent and 0.8 percent, led by resource and tech shares.
Back home, organized retailers and aviation stocks are among the prominent gainers. Pantaloon Retail is climbing 6.8 percent, Shoppers Stop is gaining 2.7 percent, Kingfisher Airlines is up 4.7 percent and SpiceJet is rallying 2.5 percent. In the Sensex pack, SBI, Tata Steel, HDFC, Sterlite, Mahindra & Mahindra, ICICI Bank, Larsen & Toubro and BHEL are rallying 2-3 percent.
Reliance Communication is climbing 4.3 percent on reports it will raise call rates by 25 percent from today. Zee Entertainment Enterprises is rising 0.7 percent after launching a 24-hour Bangla movie channel -'Zee Bangla Cinema'.
Essar Ports is gaining 2.3 percent after the company refinanced its debt in its subsidiary Essar Bulk Terminal through take-out finance scheme of India Infrastructure Finance Company. Amtek India is up 0.7 percent on raising $70 million through the issue of foreign currency convertible bonds.
Suzlon Energy is gaining 2.2 percent after its subsidiary Repower Systems SE and WSB Neue Energien GmbH signed a contract for the construction and delivery of 22 REpower MM92 wind turbines.
Glenmark Pharmaceuticals is little changed after getting tentative approval from the U.S Food and Drug Administration for migraine tablets. Mahindra & Mahindra Financial Services is losing 0.9 percent as it sold a 12.37 percent stake in its wholly-owned subsidiary, Mahindra Insurance Brokers, to Inclusion Resources for Rs.64.33 crore.
Indian shares fell notably on Thursday, mirroring weak cues from Asia and Europe as disappointing economic data from China, Japan and Europe stoked worries that the global slowdown could be more severe than meets the eye. The benchmark 30-share Sensex ended the session down 147 points or 0.79 percent at 18,349, while the broader Nifty index fell by 46 points or 0.82 percent to 5,554.
by RTT Staff Writer
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