Indian shares rebound

Indian shares rebounded in late trade on Wednesday to post their highest close in 12 weeks, as metal producers and auto makers jumped, although investors were doubtful the rally could be sustained after a rise of nearly 12 percent so far this year.
Auto makers rose on better-than-expected January sales, with top carmaker Maruti Suzuki gaining 2.4 percent to its highest close in five and a half months after it reported its first monthly sales rise since May last year.
No 2 lender ICICI Bank fell 1.4 percent after surging nearly 6 percent in the previous session, while top mortgage lender Housing Development Finance Corp fell 1.3 percent after private-equity firm Carlyle Group was said to have sold a quarter of its stake in the company.
The main 30-share BSE index rose for a second straight day to close 0.62 percent higher at 17,300.58, with 19 of its components rising. It was the index's highest close since November 9.
"I think February is going to be difficult," said Gajendra Nagpal, chief executive of Unicon Financial Intermediaries in New Delhi.
The benchmark posted its best January rise in 18 years, rallying 11.3 percent on a surge in foreign fund investments, after losing nearly a quarter of its value last year.
Foreign funds have been net buyers of about $2 billion of shares in January, compared with net outflows of about $500 million last year.
Charts also show the market is hovering near overbought territory. The benchmark's 14-day Relative Strength Index was at 68.25 at Wednesday's close. A reading above 70 typically indicates overbought conditions. Also, the main index faces resistance at 17,315, its 200-day moving average.
HDFC, the country's biggest mortgage lender, dropped 8.95 rupees to 688.90.
Tata Motors gained 1.9 percent after it reported January sales rose 16 percent. Mahindra & Mahindra, which posted a 22 percent rise in January sales, ended 2.2 percent higher.
Top steelmaker Tata Steel jumped 4.5 percent, while Jindal Steel & Power surged 6.3 percent. The metal sector index closed 3 percent higher.
The 50-share NSE index gained 0.7 percent to 5,235.70. In the broader market, there were more than two gainers for every loser on a heavy volume of about 929 million shares.