Indian shares gain for a second day; Infosys earnings, IIP key

Thu Apr 11, 2013 4:01pm IST

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Stocks

   

* BSE index gains 0.69 pct; NSE ends 0.64 pct higher
    * Tata Motors gains on hopes JLR global wholesales to
improve
    * Jet Airways falls on worries Etihad stake sale may be
delayed

    By Abhishek Vishnoi
    MUMBAI, April 11 (Reuters) - Indian shares rose on Thursday
to a one-week high, marking a second straight session of gains
as Infosys continued to gain ahead of its quarterly results on
Friday, while ICICI Bank rose on attractive valuations after
recent step falls. 
    Gains also came after both the Dow and the S&P 500
 ended at record highs, while Asian shares were further
underpinned by data showing a surge in local currency loans in
March. 
    Analysts expect the near-term trend to be determined by
Infosys Ltd's fourth-quarter results on Friday,
setting the tone for Jan-March earnings results season, and also
industrial production data, which probably shrank in February.
    A consensus forecast by a Reuters poll of 26 economists
showed factory production likely fell by 0.7 percent in February
on a year earlier, due to a contraction in infrastructure
industry output and flagging demand, after a surprisingly strong
rise in January. 
    "Infosys results, which is expected to surprise the market
positively, and IIP numbers would be the near-term catalysts for
the market," said Deven Choksey, managing director of KR Choksey
Securities.
    Some buying is happening at lower levels as benchmark
indexes have come close to support at 5500, added Choksey.
    The benchmark BSE index rose 0.69 percent, or
127.75 points, to end at 18,542.20, marking its highest close
since April 4.
    The broader NSE index rose 0.64 percent, or 35.30
points, to end at 5,594, its highest close since April 3.
    Foreign investors paring some holdings in last few sessions,
due to lingering concerns on domestic economy and political
instability, led the benchmark indexes earlier this week to
their lowest close since the government's "big bang" reforms in
September sparked a powerful rally. 
    Economists polled for the latest quarterly survey lowered
their growth forecast for Asia's third largest economy for the
eighth consecutive time.
    Gross domestic product will increase 6.0 percent in the
current fiscal year to March 2014 after it grew at a decade-low
of 5.0 percent in the previous fiscal year, according to a
median forecast of 27 economists. 
    Tech shares gained for a second day as previous losses are
seen as overdone: Infosys rose 3.6 percent ahead of fiscal 2013
earnings.
    HCL Technologies Ltd rose 3.3 percent, while Tata
Consultancy Services ended 0.4 percent higher. 
    HCL may be the only one among India's big four IT stocks to
beat January-March earnings consensus forecasts, according to
Thomson Reuters StarMine data.
    StarMine's SmartEstimates shows HCL Tech would report an EPS
of 13.34 rupees for the quarter compared with mean consensus
estimates of 12.48 rupees. SmartEstimates measures the forecasts
of only top-ranked analysts.
    By contrast, Infosys, TCS and Wipro Ltd are
expected to slightly underperform consensus forecasts, according
to SmartEstimates. 
    ICICI Bank Ltd gained 3.6 percent as valuations
started looking attractive to many after it fell 15.7 percent
between Jan. 31 and Wednesday, dealers said.
    Tata Motors Ltd rose 3.8 percent on hopes unit
Jaguar Land Rover Ltd (JLR) will report solid global
wholesales for March. 
    Titan Industries Ltd gained 0.6 percent after
Jefferies upgraded the stock to "buy" from "hold" and raised its
target price to 296 rupees from 288 rupees, saying recent
concerns about increased regulatory scrutiny on gold lending and
the demand environment are overdone.    
    Kingfisher Airlines rose 4.6 percent after the
grounded airline submitted a plan on Wednesday to India's
aviation regulator to restart operations, saying its parent
group would provide initial funding and asking for its flying
licence to be renewed.    
    However, shares in Jet Airways India Ltd fell 3.3
percent after Reuters reported a stake sale to Abu Dhabi's
Etihad Airways could be delayed until at least August, two
dealers said. 
    Bharti Airtel Ltd fell 2.3 percent after India's
Supreme Court said the company cannot add new 3G customers in
seven zones where it does not own the airwaves and offers the
services through pacts with other carriers, pending a final
ruling in the dispute. 
    
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Dollar's ascent versus yen pauses but trend intact      
* Oil falls towards $105 as demand growth falls            
* Dollar steadies, shares firm as fresh gains eyed   
* 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 

 (Editing by Sunil Nair)
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