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Indian shares extend gains to a fifth day on FII inflows
September 11, 2013 / 11:29 AM / 4 years ago

Indian shares extend gains to a fifth day on FII inflows

* NSE ends 0.28 pct higher; BSE index flat
    * FIIs extend buying streak to a fourth day
    * State-owned banks rally on relative valuations

    By Abhishek Vishnoi
    MUMBAI, Sept 11 (Reuters) - Indian shares edged higher on
Wednesday, posting a fifth consecutive session of gains, as
continued foreign investor buying lifted some recently
under-performing blue chips such as State Bank of India, though
others were hit by profit-taking.
    Foreign institutional investors (FIIs) bought 27 billion
rupees ($422.16 million) of shares on Tuesday, bringing their
total to nearly 50.5 billion rupees over the previous four
sessions. 
    Indian indexes have rallied over the past five sessions,
with the broader NSE index up nearly 11 percent, on
hopes that the government will announce steps to boost the
economy.
    Speculation has centred around measures to attract foreign
inflows and curb non-essential imports, as well as on a
potential hike in diesel prices that would help improve
confidence about the government's finances.
    "New RBI governor's action has been appreciated by rupee,
and thereby equities, and now there are expectations that the
government may try and match his efforts," said Dipak Acharya,
fund manager at Baroda Pioneer Asset Management Co.  
    The broader NSE index rose 0.28 percent, or 16.40
points, to 5,913.15, closing above the psychologically important
5,900 level and marking its highest close since July 24. 
    The benchmark BSE index rose 0.35 points, to end at
19,997.45, almost unchanged from Tuesday's close.
    However, the gains were limited as a week of rise for world
stocks petered out on Wednesday and a sell-off in oil and core
government debt eased, after talks began on trying to avert a
U.S. military strike on Syria against a broadly calm market
backdrop. 
    Dealers also await the July factory data and the wholesale
and CPI inflation data for August before the monetary policy
review next week.
    Banking shares rose on value buying with the State Bank of
India Ltd rising 3.5 percent and Axis Bank Ltd
 ending 3.15 percent higher.
    Dealers said state-owned banks were playing catch-up to the
rally in private peers due to relatively attractive valuations.
    Among midcap banks Union Bank Ltd rose 7.8
percent, while Bank of India Ltd surged 10.4 percent.
    Shares of Larsen & Toubro Ltd gained 1.4 percent,
adding to Monday's 7 percent rise after Goldman Sachs added the
stock to its "conviction buy list," citing valuations and growth
potential among other factors. 
    Shares in companies owned by foreign promoters also rallied
for a second day after the central bank said on Friday it would
allow non-residents to buy stocks of listed domestic firms
through the foreign direct investment route. 
    ABB India Ltd rose 3.2 percent, adding to Tuesday's
17.43 percent gain, while Siemens Ltd gained 8
percent, totalling a gain of 16.3 percent in two days.  
    However, Tata Motors Ltd declined 2.5 percent as a
near-10 percent rise on Tuesday was seen as overdone.
    Tata Motors said later that global wholesale vehicle sales
fell by 16 percent in August, hit by a drop in passenger vehicle
sales at India's largest automaker by revenue. 
    Cairn India Ltd fell 2.6 percent as Brent crude
futures declined more than 4 percent in the previous two days as
fears of an imminent strike against Syria eased. 
        
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Yen weakens vs euro as diplomacy eases Syria tensions   
* Brent gains above $111 after steep fall                  
* Share rally pauses as Syrian talks begin           
* 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 

($1 = 63.9575 Indian rupees)

 (Editing by Jijo Jacob)

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