Indian shares rose for a second straight day on Wednesday, led by auto and energy stocks, encouraged by signs that foreign funds are returning to the battered market after record selling in May, brokers said.
The 30-issue Bombay share index gained 1.83 percent to close at 4,923.69 points, rising 3.4 percent in the past two days. It is down 15.7 percent in 2004.
Volume dived to 73 million shares, down from 89 million on Tuesday and well below average. The market breadth was mildly positive, with gainers outpacing losers 850 to 711.
The broader National exchange index rose 1.81 percent to 1,535.20 points.
"The market has absorbed the foreign fund sales," said P.R. Dilip, chief operating officer with investment advisor Equity Intelligence Pvt Ltd.
"It is reassuring to see them turn buyers again".
Foreign funds bought Indian shares for a net $48 million on Friday and Monday.
But they logged their biggest monthly sale in May, having pulled out $738.5 million worth of local shares after a steady flood into the country for a year and a half.
Some traders attributed Wednesday's rise to the positive climate generated by the first visit to Bombay by the new finance minister, P. Chidambaram, later in the day.
Power utility Reliance Energy Ltd surged 8.6 percent to 537 rupees after a state electricity regulatory commission ruled in its favour. The commission passed an order asking Tata Power Company Ltd to pay Reliance Energy 3.73 billion rupees over a disputed standby charges liability.
Tata Power shares fell 4.9 percent to 252 rupees. Grasim Industries Ltd, India's third-biggest cement maker, dropped 1.4 percent to 1,085.05 rupees after it said May shipments were 1.084 million tonnes, down 3.6 percent from a year earlier.
Reliance Industries Ltd, the nation's biggest petrochemicals maker and a refiner, gained 1.3 percent to 439.65 rupees, after it raised prices for most of its petrochemical products.
Comments
Comments are closed.