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Indian Shares Edge Higher On Reform Hopes

Indian shares rose on Monday, shrugging off mixed Asian cues, as investors bet that the government will take all possible steps to revive growth and boost investor confidence after Presidential elections.

IT stocks are little changed, tracking a rebound in rupee after outgoing Finance Minister Pranab Mukherjee signaled at some tough measures to strengthen the rupee in consultation with the Reserve Bank of India.

"We need foreign investment, both foreign direct investment and portfolio investment. If there are any obstacles which come in the way, we will address those problems effectively and credibly," Prime Minister Manmohan Singh said separately, sending some clear signals on the Vodafone tax issue.

The benchmark BSE Sensex is rising 114 points or 0.67 percent to 17,087, while the broader Nifty index is up 35 points or 0.68 percent at 5,181.

Coal India is moving up 1.5 percent on the price hike buzz. Suzlon Energy is climbing 3.5 percent as it entered into a binding agreement to sell its manufacturing subsidiary in China for $60 million.

L&T is rising 0.8 percent on reports that it is seeking to sell stake in its infrastructure development subsidiary-L&T Infrastructure Development Projects.

ONGC is posting a modest 0.1 percent gain on reports it is mulling listing its overseas investment arm ONGC Videsh next year to raise funds for aggressive foreign acquisitions.

SKS Microfinance is rallying 5.2 percent after the Andhra Pradesh High Court issued an interim order suspending the District Rural Development Agency notice canceling the company's license to conduct business in Mahabubnagar district.

Sugar stocks are gaining ground, with Balrampur Chini, Bajaj Hindusthan and Shree Renuka rising 1-2 percent. Triveni Engineering is up a whopping 10 percent.

by RTTNews Staff Writer

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