Indian share prices closed 1.45 percent higher led by Infosys Technologies ahead of the start of a new sale of its American Depository Shares on the Nasdaq market Monday, dealers said. The Bombay Stock Exchange's 30-share Sensex index rose 92.87 points to close at 6,481.35. Shares worth 18.92 billion rupees (432 million dollars) were traded on the Mumbai exchange as 1,627 shares closed positive and 719 ended down. Dealers said Infosys, India's second largest software exporter, led the rally on hopes the sale of 16 million shares, two percent of the total shares outstanding, on the Nasdaq starting Monday would get a strong response from American investors.
"On Nasdaq, Infosys shares are trading at 30 percent premium to the domestic share price and local investors bought on the hope that the new offer will also get a strong response," said Pareen Thakkar, a dealer at brokerage Dalal and Broacha.
The gains in Infosys triggered buying in other software shares, which had fallen recently after weak earnings guidance from some of the companies, including Infosys.
Infosys shares rose 75.50 rupees or 3.74 percent to 2,096.85, while rival Wipro, the country's third largest software exporter, gained 9.85 rupees or 1.55 percent to 646.85.
Dealers said old economy shares were also keenly bought on fresh fund inflows in the last few sessions.
Tata Steel, India's largest private sector steel maker, rose 9.30 rupees or 2.63 percent to 363.15, while engineering company Bharat Heavy Electricals gained 18.25 rupees or 2.22 percent to 839.55.
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