Indian shares rise

Bargain buying sent Indian shares up 1.47 percent in thin trade on Monday, led by gains in software exporters, Reliance Industries and lenders, as US jobs and manufacturing data signalled underlying strength in the US economy. Signs of strength in the US economy tend to encourage investments in riskier assets such as emerging market stocks.
The main 30-share BSE index closed up 232 points at 15,970.75, with 27 of its components rising. The benchmark index had closed 0.47 percent lower on Friday, ending a two-day rally, on worries over domestic economic growth.
The 50-share NSE index rose 1.38 percent to 4,779.00. In the broader market, there were 1.9 gainers for every loser on total volume of about 354.5 million shares.
US, European and some Asian markets including Hong Kong and Singapore were closed on Monday for Christmas holidays. "In the short run, stocks are stretching their strength. Given the current scenario, markets have started to look somewhat expensive," said Gajendra Nagpal, chief executive officer at Unicon Financial Intermediaries.
Nagpal cautioned the rally would be unsustainable until India addresses its high fiscal deficit and inflation. The federal government earlier said meeting its fiscal deficit targets would be a challenge in a slowing domestic economy and uncertain global environment.
India's fiscal deficit during April to October was 3.07 trillion rupees, or 74.4 percent of the full-year target.
Headline inflation has barely budged from above 9 percent for a year now, driven mainly by high food prices. Any moderation in food is expected to give some relief on the wider inflation reading. Asia's third-largest economy will see inflation easing to between 6 and 7 percent, said Finance Minister Pranab Mukherjee last week.
Software exporters were the top sectoral gainers, led by bellwether Infosys that ended up 3.01 percent. Shares in No. 1 software exporter Tata Consultancy Services gained 2.7 percent.
India's top mobile phone carrier Bharti Airtel closed near its day's high of 4.3 percent after the telecoms tribunal gave telecoms firms temporary respite from a government ban on 3G roaming pacts. Idea Cellular also closed 4.38 percent higher.
Last Friday, the telecoms ministry told carriers they would not be allowed to offer 3G services beyond the zones where they have their own radio airwaves. Electrical goods maker Havells India gained 3.5 percent, having risen as much as 4.3 percent, after it announced an equal joint venture with China's Shanghai Yaming Lighting Co to set up a lighting products plant in China, generating revenue of $100 million in three years.
Energy major Reliance Industries ended 1.96 percent higher.
Foreign institutional investors have sold shares worth $61 million this month until Thursday, data from the capital markets regulator showed. In sharp contrast, they were net buyers of a record more than $29 billion Indian shares in 2010. Asian shares slipped from a two-week high, while MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.08 percent.