Indian shares gain ahead of Parliament vote; banks lead

Fri Nov 30, 2012 5:25pm IST

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Stocks

   

* BSE ends 0.88 percent up; NSE 0.94 pct higher
    * GDP for July-Sept grew 5.3 pct y/y, versus 5.4 pct
forecast
    * Parliament vote on FDI in multi-brand retail key

    By Manoj Dharra
    MUMBAI, Nov 30 (Reuters) - Indian shares ended higher for
the fourth day in a row after weak GDP data raised hopes of some
monetary easing at the next central bank meeting on Dec. 18.
    The Indian economy extended its long slump in the quarter
ending in September with lower-than-expected growth at 5.3
percent keeping it on track for its worst year in a decade.
 
    The Indian stock markets will closely track the vote on
foreign investment in multi-brand retail in parliament and
manufacturing PMI for November next week. Market participants
say stocks may extend gains if the vote goes in favour of the
government.
   "It really depends on the Parliament vote now. If it goes
through, there will be a boost to confidence. If it doesn't, it
may indicate less aggression on reforms from the government,"
said Sonam Udasi, head of research at IDBI Capital.
    The BSE index ended 0.88 percent, or 168.99 points
higher at 19,339.90, its highest close since April 27, 2011,
gaining 4.5 percent for the week.
    For the month BSE rose 4.51 percent; NSE added 4.63 percent.
    The 50-share NSE index gained 0.94 percent, or 54.85
points, to 5,879.85, its highest close since April 21, 2011,
also adding 4.5 percent for the week.
    Both the indexes have posted their best weekly gains since
the week ending June 8 on rising expectations of reform and
measures to contain India's twin deficit and FII inflow along
with Moody's stable outlook on India and after Goldman Sachs
upgraded Indian equities.
    Andrew Swan, who manages about $3 billion as the head of
Asian equities for BlackRock, told the Reuters Global Investment
2013 Outlook Summit on Friday that Indian politicians will push
reforms and economic growth will tick up. 
    State Bank of India rose 1.8 percent and Punjab
National Bank gained 2.37 percent after data showed
farming output has grown 1.2 percent in the September quarter,
as both banks have substantial farm loan exposure. 
    Indian banks have seen a pick-up in demand for credit since
the beginning of the festive season in October and are confident
of meeting the central bank's projection for the fiscal year
ending in March 2013. 
    ICICI Bank Ltd rose 1.67 percent, while Union Bank
 was up 3.74 percent.
    Recent underperformers, that missed the week's rally, gained
on Friday. Shares of Oil and Natural Gas Corp (ONGC) 
rose 4.4 percent, while capital goods major Bharat Heavy
Electricals Ltd gained 5.5 percent.
    Shares in drugmaker Cipla rose 2.5 percent after
Cipla Medpro won a share in South Africa's $667 million
contract, as it supplies the bulk of Cipla Medpro's drugs.
 
    South Africa on Thursday awarded a $667 million contract to
supply life-prolonging HIV medicine to 12 international and
domestic firms, including Cipla Medpro, to deal with its biggest
health problem. 
    Bharti Airtel Ltd shares rose 2 percent.
    Bharti Infratel Ltd, the telecommunications tower unit of
Bharti Airtel is set to raise up to $825 million next month in
what would be the country's biggest initial share offering in
two years. 
    Shares in HCL Technologies Ltd rose 2.8 percent
after the company said it signed a five-year, multi-million
dollar transformational engineering services agreement with
Manitowoc Cranes. 
    However, among the stocks that fell, shares in Idea Cellular
 dropped 2.4 percent on profit-taking after rising
16.12 percent in November as of Thursday's close, versus a gain
of 3.6 percent in the NSE index.
    Dealers say the reduction in regulatory uncertainty after
lower-than-expected receipts in the 2G auction helped the stock
gain in November but it is priced in. 
    
     For additional stocks on the move, double click     
 
  
    FACTORS TO WATCH                                            
  
* Yen falls broadly on month-end flows, easing bets       
* Oil falls towards $110 as U.S. fiscal worries weigh      
* Shares edge lower as U.S. budget talks stall       
* 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       

 
    
    
    

 (Editing by Anupama Dwivedi; manoj.dharra@thomsonreuters.com)
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