BSE index closes 0.94 per cent higher at 19,691.78.

The Sensex closed 0.9 per cent higher on Monday, helped by firm world equities, but trading remained choppy as ongoing corruption probes kept investor sentiment wary.

Reliance Communications gained nearly two per cent after it announced the launch of its third-generation (3G) mobile services in four cities. The second-largest mobile operator said it would cover all its 13 zones by next March. The 30-share BSE Index closed 0.94 per cent or 812.89 points higher at 19,691.78, with 25 of its components gaining. It swung widely on the day and fell as low as nearly one per cent briefly.

“Global markets are doing good. That has helped the sentiment and we are in the positive after falling briefly,” said Himanshu Varia, head of institutional sales at brokerage Asit C Mehta.

Trade volume was low with only 287 million shares traded on the BSE, while gainers outpaced losers in the ratio of 2.3:1.

The benchmark has declined 6.7 per cent since hitting a near record-high in early November, following a widening probe into sale of telecom licences and radio waves cheaply, that a government auditor said cost the authorities about $39 billion in lost revenue.

A bribes-for-loans scandal has also weighed on sentiment.

Data from Nomura showed foreign funds sold only Indian shares of the seven Asian equities markets in the week to December 10.

While the corruption inquiry has temporarily dented the market sentiment, it has not tarnished India’s image as a lucrative investment destination, dealers said.

Mark Mobius, fund manager at Templeton Asset Management, said India’s growth potential was higher than that of its rival China.

India’s main stock index is up 12.8 per cent so far in 2010, driven by foreign fund investment of $28.7 billion. China’s Shanghai Composite Index is down 10.8 per cent so far this year.

Energy giant Reliance Industries, which has been a laggard this year with a 4.4 per cent decline, led the gains on Monday.

The stock, which has the highest weighting on the Sensex, closed 1.8 per cent higher, trying to catch up with the broader market rally.

Mortgage lender Housing Development Finance Corp rose 3.6 per cent, recovering from a five-per cent decline over the previous four sessions.

Metal producers rallied as copper prices rose more than one per cent in Shanghai, towing London to within a whisker of an all-time peak, on positive technical signals and strong data from China over the weekend.

Tata Steel, the world’s seventh-largest steelmaker, climbed 2.1 per cent while aluminium maker Hindalco rose 3.1 per cent.

The 50-share NSE Nifty closed 0.9 per cent higher at 5,907.65 points.

At 1025 GMT, Europe’s FTSEurofirst 300 gained 0.5 per cent while the MSCI’s measure of Asian markets other than Japan firmed 0.4 per cent.

Stocks that moved
JSW Steel rose 8.2 per cent to Rs 1,129.50 after Goldman Sachs upgraded the steelmaker to ‘buy’ from ‘neutral’.

Personal care products maker Emami jumped 16.7 per cent to Rs 418.25 after its failed attempt to acquire privately held Indian Paras Pharmaceuticals allayed fears of overpaying for the deal, dealers said.

Top power and engineering construction firm Bharat Heavy Electricals climbed 2.7 per cent to Rs 2,340.20 as CLSA upgraded the stock to ‘buy’ from ‘outperform’.

source: Business Standard

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