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Indian shares edge up; weaker rupee boosts exporters
November 20, 2014 / 11:13 AM / 3 years ago

Indian shares edge up; weaker rupee boosts exporters

* BSE index gains 0.12 pct; NSE index adds 0.23 pct
    * Weak rupee dims prospects of rate cuts
    * Foreign investors' buying of Indian shares slows down
    * Kotak, ING Vysya hit record highs on report of M&A talk

    By Abhishek Vishnoi
    MUMBAI, Nov 20 (Reuters) - Indian shares edged up on
Thursday as exporters such as Infosys Ltd rallied
after the rupee fell to a nine-month low, although the weaker
local currency hit other blue-chips such as Tata Motors
 by tempering hopes of interest rate cuts.
    Meanwhile, a television news channel reported that Kotak
Mahindra Bank may buy ING Vysya Bank,
sending both stocks to their record highs. Kotak said no
decision had been made in relation to any merger.
 
    Broader gains were capped by worries that overseas investors
may slow down purchases or lock in some profits after local
shares rose to record highs on Tuesday.
    Foreign institutional investors bought shares worth $11.59
million on Wednesday and $2.4 million on Tuesday. They have
bought a net $15.47 billion worth of shares so far in 2014,
according to regulatory data.
    Investors are waiting for the winter session of the
parliament scheduled to begin next week and the Reserve Bank of
India's policy review on Dec. 2, to decide their further course
of action.
    "There is event risk of winter session, RBI review. Foreign
investors are also in a wait mode before these events and are
likely to pare some positions," said Vinod Nair, head of
fundamental research at Geojit BNP Paribas Financial Services
Ltd.
    The BSE index rose 0.12 percent to 28,067.56, 0.8
percent away from its record high hit on Tuesday.
    The NSE index gained 0.23 percent to 8,401.90, above
the psychologically important 8,400 level, and 0.64 percent away
from its all-time high of 8,455.65.
    Exporters led gains. Infosys rose 1.3 percent, while Tata
Consultancy Services ended up 1.2 percent.
    Tech Mahindra rose 3 percent, HCL Technologies
 gained 1.1 percent and Wipro advanced 1.2
percent.
    Among drug exporters, Cipla rose 3.2 percent and
Lupin gained 1.3 percent.
    Kotak Mahindra ended 7.4 percent higher after marking a
record high of 1,163 rupees earlier in the day, while ING Vysya
soared 7.8 percent after marking an all-time high of 865 rupees.
Earlier in the day, ET Now business news channel reported Kotak
is close to acquiring ING Vysya. 
    Among losers, blue-chips, including rate-sensitive stocks,
such as Tata Motors declined 0.9 percent as investors
tempered rate-cut hopes after the rupee fell to its weakest in
nine months. 
    HDFC Bank ended lower 0.9 percent, while Axis Bank
 lost 0.8 percent.    
            
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Dollar hits new seven-year high against yen            
* Brent holds above $78 a barrel as market waits for OPEC 
* Shares punctured by China, Europe slowdown        
* 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                                   
                         
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 (Editing by Subhranshu Sahu)

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