Indian shares rise

Indian stocks rose 1.77 percent on Monday, boosted by better-than-forecast quarterly economic growth and receding concerns about Dubai's debt woes, dealers said. The benchmark 30-share Sensex index closed up 294.21 points at 16,926.22, snapping two trading days of losses.
Sentiment was buoyed by official figures showing India's economy grew by 7.99 percent in the fiscal second quarter, its best performance in 18 months, on the back of government spending and record low interest rates. "As upside surprises go, this was a big one," said HSBC economist Robert Prior-Wandesforde. The growth numbers easily beat the consensus forecast of 6.3 percent growth. Finance Minister Pranab Mukherjee, who earlier forecast the economy would grow by six to 6.5 percent, said he expected expansion of "around seven percent this year".
"The GDP data was a huge surprise and boost for investment," said Atul Hatwar, dealer at brokerage Crosseas Securities. Indian markets have seen a surge in foreign capital flows, which have pushed the Sensex up over 75 percent so far this year and the rupee to a one-year high against the dollar. Foreign funds have bought shares worth 15.25 billion dollars in 2009 - the second highest amount ever - after selling stocks worth 12.33 billion dollars in the same period last year, latest official figures showed.
Gainers led losers 2,054 to 710 on turnover of 43.11 billion rupees (929 million dollars). Bharti Airtel rose 16.05 rupees or 5.66 percent to 299.7, while rival Reliance Communications rose 5.05 rupees or 3.03 percent to 171.95. Tata Motors rose 31.40 rupees or 4.99 percent to 660.90 after it reported last week it swung to a quarterly net profit, helped by a better performance by its premium car marques Jaguar and Land Rover.
Hindalco rose 5.4 rupees or 4.07 percent to 138.05 after the market regulator last Friday cleared a move for a hike in foreign investment in the company to 40 percent from 24 percent. Infosys Technologies rose 55.65 rupees or 2.39 percent to 2,383.95 while rival TCS rose 15.6 rupees or 2.32 percent to 687.2 after reports software firms were adding staff following a slowdown.