India's NSE index closes at 28-month high; ITC hits record

Fri May 10, 2013 5:02pm IST

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* BSE index gains 0.72 pct; NSE ends 0.74 pct higher
    * FIIs extend record buying spree for 15th session
    * Maruti surges on weaker yen, Suzuki's record profit

    By Abhishek Vishnoi
    MUMBAI, May 10 (Reuters) - India's NSE index rose on Friday
to its highest close since January 2011, as ITC rose to a record
on expectations foreign investors will continue to scoop up
domestic blue chips, while Maruti Suzuki surged after the yen
slid against the dollar. 
    The NSE index has gained 2.5 percent this week, marking its
fourth consecutive weekly gain as part of a global market rally
that has sent U.S. indexes to record highs as easier global
monetary policy sparks flows into riskier assets.
    Foreign investors have been net buyers for 15 consecutive
sessions, bringing their total for the year to $12.73 billion,
regulatory data shows.
    Investors are also betting the Reserve Bank of India will
continue to cut interest rates after having lowered them by 75
basis points so far this year. The key to those expectations
will be the consumer price inflation data due on Monday and the
wholesale price inflation data on Tuesday.
    India's headline wholesale inflation is expected to have
risen 5.5 percent in April from a year ago, a Reuters poll
shows, marking the slowest pace since November 2009. 
 
    "With so much monetary easing globally, the gush of global
liquidity is driving markets higher, which should continue in
the near term," said Vivek Mahajan, head of research at Aditya
Birla Money.
    Inflation is important, but might take a backseat if
liquidity continues to remain strong, added Mahajan.
    The broader NSE index rose 0.74 percent, or 44.60
points, to end at 6,094.75. 
    The benchmark BSE index rose 0.72 percent, or
143.58 points, to end at 20,082.62. It gained 2.6 percent for
the week, in the fourth straight week of gains.
    A special live trading session will be conducted by NSE and
BSE on Saturday from 11:15 a.m. to 12.45 p.m
    Shares in Maruti Suzuki India Ltd gained 4.1
percent, tracking a weaker yen and on optimism around its parent
Suzuki Motor Corp's record profit in the financial year
ended March. 
    ITC Ltd gained 2.5 percent, after earlier hitting
an all-time high of 354.15 rupees, as investors placed long
positions in equity futures of the company, indicating they
expect gains to continue. 
    Shriram Transport Finance Co Ltd rose 3.6 percent
after U.S. private equity firm TPG Capital raised about
$300 million by selling its roughly 10 percent stake in the
commercial vehicle financier to India's Piramal Group.   
 
    Hopes that upcoming consumer price inflation data would
support the case for more rate cuts also helped rate-sensitive
stocks such as ICICI Bank Ltd.
    ICICI Bank gained 1.1 percent while HDFC Bank Ltd 
rose 1.9 percent.
    However among stocks that fell, Apollo Tyres Ltd 
shares fell 0.5 percent ahead of its March-quarter earnings
later in the day.
    Apollo Tyres later reported its Jan-March net profit fell by
9.55 percent to 1.42 billion rupees. 
    
    For additional stocks on the move double click       
     
   FACTORS TO WATCH                                             
* Yen slides to 4-year low as U.S. data lifts dollar      
* Brent slips, but stays above $104 as US data supports    
* Yen slumps to four-year low against dollar         
* 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 Anupama Dwivedi)
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