Indian shares overcame a sluggish start to climb to a new peak on Monday, before ending up 0.87 percent as software and telecom firms rallied on hopes of strong growth and robust foreign fund inflows.
Bellwether Infosys Technologies Ltd rose 1 percent, while top mobile services firm Bharti Airtel Ltd added 3.9 percent. But Tata Steel Ltd and aluminium producer Hindalco Industries Ltd both slipped 1.1 percent as metals weakened after a fall in copper on the London Metal Exchange. "Sentiment is very positive on foreign fund flows and growth prospects," said Shane Sequiera at Enam Securities.
The Centre for Monitoring Indian Economy forecast India would grow 8 percent in the fiscal year to March 2007, as economic momentum remained strong despite tighter monetary policy. The benchmark BSE index ended up 0.87 percent at 13,399.00 points, a record close, and just off a new peak of 13,410.08 set during the day. Gainers beat losers 1,447 to 1,072 on brisk trade of 234 million shares.
The 50-issue NSE index closed 0.63 percent higher at a record close of 3,858.75 points, off a new peak of 3,862.05. "We are also seeing more action in the mid-caps, which suggests a strong undertone and a broad-based rally," Sequiera said. Foreign investment has topped $7 billion this year, helping the BSE index gain 14.5 percent since the start of September and 43 percent so far this year, making it the best-performing index in Asia-Pacific.
Elsewhere in the region, the Karachi 100 index edged up 0.04 percent to 10,743.88 points, while the Colombo All-Share Index eased 0.11 percent to 2,562.06. Zee Telefilms Ltd, India's largest listed media firm, rose 3.3 percent to 341.65 rupees after it said that it bought 50 percent in Dubai-based Taj Television's Ten Sports channel for an undisclosed sum.
Computer maker HCL Infosystems Ltd rose 4.3 percent to 165.15 rupees after the company secured a 5.91 billion rupee ($132.7 million) order from state-run Bharat Sanchar Nigam Ltd to provide network facilities for a project.
Software services provider iGate Global Solutions Ltd rose 3.8 percent to 240.75 rupees after it said it had signed a three-year technology services agreement with Radian Group Inc. Usha Martin Ltd rose 4.0 percent to 177.05 rupees, after the wire rope maker said its joint venture with Germany's Gustav Wolf will start manufacturing tyre beads and expand its steel cord capacity.
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