Indian shares gain for 6th day; Obama victory helps

Wed Nov 7, 2012 5:00pm IST

Related Topics

Stocks

   

* BSE ends up 0.45 pct; NSE adds 0.62 pct
    * India's main indexes mark highest close in 4-1/2 weeks
    * Focus on India's fiscal deficit, Greece vote

    By Abhishek Vishnoi
    MUMBAI, Nov 7 (Reuters) - Indian shares rose for a sixth
session on Wednesday, marking their highest close in near 4-1/2
weeks, as State Bank of India rose on hopes of better asset
quality in September quarter results, while other lenders such
as ICICI Bank rose in anticipation of better loan growth in the
holiday season.
    The gains also tracked a rally in global shares after U.S.
President Barack Obama was re-elected, signalling no dramatic
shift in U.S. economic policy. Attention now switches to Greece
where parliament votes later in the day on an austerity package.
 
    "U.S President Barack Obama's re-election is sentimentally
positive for India and Indian markets," said R.K Gupta, managing
director at Taurus Mutual Fund.
    However, with the quarterly earnings season nearing its end
and euphoria over government reforms subsides, focus would shift
to India's yawning fiscal gap, dealers said.
    India will likely miss its revised fiscal deficit target for
the financial year ending in March, a Reuters poll showed,
putting a question mark over the country's efforts to avert a
credit rating downgrade. 
    Investors would now start scrutinising the government's
fiscal condition amid worries if reforms in insurance and
pension will pass muster in the winter session of parliament,
Gupta added.
    India's BSE index rose 0.45 percent, or 85.03
points, to end at 18,902.41, bringing its gains to 2.55 percent
over the past six sessions.
    The 50-share NSE index rose 0.62 percent, or 35.70
points, to 5,760.10, marking its highest close since Oct. 4.
    State Bank of India rose 2 percent on hopes of
better-than-expected results and lower non-performing loans in
the September quarter, with results due on Friday. 
 
    The bank's chairman, Pratip Chaudhuri, said SBI's September
quarter non-performing asset position was looking better than
that of the June quarter. 
    Among other financial stocks ICICI Bank rose 1.1
percent, while Housing Development and Finance Corporation
 settled 2 percent higher, after hitting a 52-week high
of 805.85 rupees intraday.
    Jubilant Foodworks, a fast food chain operator,
rose 2.93 percent after the company reported a surge of 36.67
percent in September quarter net profit to 323.5 million rupees.
 
    Reliance Capital gained 3.03 percent after
reporting July-September net profit of 4.01 billion rupees
versus 330 million rupees in the year-ago quarter.
 
    However, Bharti Airtel shares fell 1 percent,
after earlier rising as much as 2.6 percent, as investors
factored in a one-off gain related to a telecom tribunal's
judgment that boosted revenue and profit. [I D :nL3E8M7925]
    Bharti's consolidated net profit fell 30 percent from a year
earlier to 7.21 billion rupees ($132.5 million) for the three
months to September, despite a one-off gain of 2.39 billion
rupees from an outstanding dispute over inter-connect charges.
 
    Shares in Cadila Healthcare fell 3.14 percent
after reporting a 7.34 percent fall in July-September earnings,
as a forex loss affected results. 
    Tata Power Co Ltd fell 2.5 percent after posting a
surprise second-quarter loss on Tuesday, hit by higher finance
and depreciation costs at its power projects and lower revenue
from its coal units. 
    The company posted a consolidated net loss of 838 million
rupees, compared with a net loss of 11.9 billion rupees a year
earlier. Revenue rose 22 percent to 76.5 billion rupees, helped
by the commissioning of new units. 

    For additional stocks on the move double click  
             
   FACTORS TO WATCH                                             
* Dollar falls after Obama victory, fiscal cliff looms    
* Brent steadies near $111 after Obama re-elected          
* World shares gain, dollar slips after Obama win    
* Foreign institutional investor flows          
* For closing rates of Indian ADRs                       
                         
   ASIA-PACIFIC STOCK MARKETS:                                  
Pan-Asia........ Japan.......   S.Korea... 
S.E. Asia.......        Hong Kong...  Taiwan.... 
Australia/NZ....        India.......  China..... 
                          
   OTHER MARKETS:                                               
Wall Street ....         Gold ....... Currency.. 
Eurostocks.....         Oil ........  JP bonds... 
ADR Report .....       LME metals. US bonds.. 
Stocks News US.. Stocks News Europe     
                         
   DIARIES & DATA:                                              
Indian Data Watch   Asia earnings diary 
 
U.S. earnings diary     European diary       
 
Indian diary          Wall Street Week Ahead  
Eurostocks Week Ahead                                   
                           
   TOP NEWS:                                                    
   For top Asian company news, double click on:       
   U.S. company news  European company news  
   Forex news        Global Economy news  
   Technology news  Telecoms news        
   Media news       Banking news           
   Politics/General    Asia Macro data      <ECONASIA   

 (Additional reporting by Manoj Dharra; Editing by Jijo Jacob)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Jan Dhan Yojana

REUTERS SHOWCASE

Japan Trip

Japan Trip

Modi eyes breakthrough nuclear pact on Japan trip.  Full Article 

Chance For Reform

Chance For Reform

India's coal crunch - a chance to revamp, reallocate and revive.  Full Article 

E-Commerce

E-Commerce

Ratan Tata invests in online retailer Snapdeal.  Full Article 

Top Priority

Top Priority

Finance minister says food inflation is top priority.  Full Article 

Deal Talk

Deal Talk

Who wants to buy Snapchat? Microsoft, Google, Apple, Alibaba.  Video 

Fresh Funding

Fresh Funding

Tiger Global leads $65 million funding in Indian messaging app Hike.  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

Safety Net

Safety Net

SEBI revamps trading safety-net rules.  Full Article 

Fraud Investigation

Fraud Investigation

IMF's Lagarde put under investigation in French fraud case.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage