Indian shares rose 0.12 percent on Tuesday in volatile trade the day after posting a record single-day gain following the Congress party-led alliance's election win, dealers said. The benchmark 30-share Sensex closed 17.82 points higher at 14,302.03, retreating from the day's high of 14,930.54.
Trading was hectic with the Mumbai stock exchange logging record turnover, even as investors locked in gains with the Sensex at a near eight-month peak. The Sensex has risen more than 77 percent from a recent low of 8,047.17 in March this year.
On Monday, stock prices hit their upper trading limit as investors cheered the Congress-led alliance's strong election win that analysts believed would boost economic reform. "After opening strongly, the markets lost ground intra-day on profit-taking. Overseas funds bought index-linked property and banking stocks," said Alex Mathew, head of research at Geojit BNP Paribas Financial Services.
Gainers led losers 1,927 to 739 on record turnover of 117.51 billion rupees (2.47 billion dollars). Banking and engineering stocks rose, while software stocks fell on the firmer rupee against the dollar. Earnings for India's export-oriented software companies could be hit as their US-based clients are billed in dollars.
Infosys Technologies slid 206.1 rupees or 11.65 percent to 1,563.75. State Bank of India jumped 176.5 rupees or 11.19 percent to 1,754.45 on expectations of financial sector reforms. DLF surged 62.4 rupees or 19.36 percent to 384.7 and Larsen and Toubro rose 109.1 rupees or 8.82 percent to 1,346.25 on hopes of greater infrastructure spending.