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Indian Shares Rise On Global Cues

Indian shares rose on Monday, tracking firm global cues after the U.S. jobs report showed the economy is growing modestly but probably not enough to warrant a cut in the Fed's bond-buying program. The Indian rupee hit a record low of 57.50 against the dollar in early trading, dampening investor sentiment to some extent.

Other Asian markets are trading mostly higher, with Japan's Nikkei index rallying 3.5 percent on a weaker yen after Japan's Government Pension Investment Fund raised its target portfolio allocation of domestic equities to 12 percent from 11 percent previously.

Stocks elsewhere are posting gains after a slew of data out of China over the weekend indicated China's economic growth likely slowed again in the second quarter. The Chinese and Australian markets are closed for public holidays.

The benchmark BSE Sensex is currently up 75 points or 0.38 percent at 19,504, while the broader Nifty index is at 5,906, up 25 points or 0.4 percent from its previous close. Among the prominent gainers in the Nifty pack, Mahindra & Mahindra, Cairn India and UltraTech Cement are up about 2 percent each.

Two-wheeler makers Bajaj Auto and Hero MotoCorp are up 1.3 percent and 1.2 percent, respectively, and IT stocks like TCS, Infosys and HCL Technologies are up about a percent each following weakness in the rupee.

Jet Airways is rising 1.1 percent as it announced the resignation of its Chief Executive Officer Nikos Kardassis without giving a reason.

Canara Bank is adding 0.6 percent after the state-owned lender said it is treading more cautiously on loan restructuring going forward.

Fortis Healthcare is up over a percent as it raised $55 million through private placement of bonds to International Finance Corporation. PVR is rallying 1.8 percent after its board approved in-principle the proposed amalgamation of Cinemax India with the company.

INOX Leisure is declining 1.1 percent after the company fixed June 28 as the record date for a scheme of amalgamation with Fame India.

Yes Bank is moving down 0.7 percent after a resolution on the appointment of three directors to the board was put to vote at the bank's annual general meeting. Tata Communications is edging down 0.4 percent after it decided to delist its American Depositary Shares from the New York Stock Exchange.

Benchmark indexes Sensex and the Nifty fell about 1.7 percent each last week on the back of a weak rupee and negative cues from global peers ahead of Friday's employment report.

by RTT Staff Writer

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