* BSE ends 1.75 pct up; NSE closes 1.7 pct higher
* Govt agrees to vote on supermarket reform
* Goldman Sachs upgrades Indian stocks
By Manoj Dharra
MUMBAI, Nov 29 Indian shares
surged on Thursday to close at their highest in 19 months after
the government agreed to a vote in parliament on allowing
foreign entry in multi-brand retail, raising hopes that key
reforms will pass through.
Shares were further boosted after Goldman Sachs upgraded
Indian stocks to 'overweight' from 'market-weight', citing
growth recovery and inflation moderation ahead. The investment
bank pegged the December 2013 Nifty target at 6,600
Traders say Moody's stable outlook on India has also eased
a potential ratings downgrade worries from Standard & Poor's and
Fitch in the near term, adding to positive sentiment.
The rupee also appreciated by more than 1 percent versus the
dollar, further helping the markets. Globally, shares rose on
Thursday after a senior U.S. lawmaker said the "fiscal cliff"
might be resolved.
"India is far larger than just retail, but there is some
significance attached to it, so if FDI goes through, it will
imply the government means business," said Paras Adenwala, MD &
Principal Portfolio Manager, Capital Portfolio Advisors.
"Even if some bills are cleared in the ongoing session of
parliament, it would be taken constructively by investors."
The BSE index ended up 1.75 percent, or 328.83
points, at 19,170, its highest close since April 28, 2011
The 50-share NSE index gained 1.7 percent, or 97.55
points, to 5,825.00, on the last day of the November F&O series
with high volumes. This was its highest close since April 27,
The market is awaiting the September-quarter gross domestic
product data due to be released at 0530 GMT on Friday, with
growth seen slowing to its lowest in nearly a decade for the
year ending in March.
Rate-sensitive stocks such as ICICI Bank Ltd
rallied on hopes the central bank may cut policy rates if it is
satisfied with government measures to reduce fiscal deficit.
Banks also rose on hopes that government would raise the cap
on foreign direct investment in insurance, and open the pension
sector to foreign investors, tracking new-found optimism around
FDI in retail.
ICICI Bank rose 4.6 percent, while HDFC Bank Ltd
gained 2.8 percent.
Among other rate-sensitive stocks, Tata Motors Ltd
rose 4.4 percent, while Bajaj Auto Ltd ended 4.7
Delhi-based property developers surged, with DLF Ltd
rose 1.6 percent and Unitech gained 8.6
Among capital goods stocks that surged were Larsen & Toubro
, which rose 2.43, while Punj Lloyd Ltd added
Cinemax India Ltd, a theatre chain operator, rose
5 percent after it said its controlling shareholders will sell a
69.27 percent stake in the company to local rival PVR Ltd
for 3.95 billion rupees ($71 million).
Shares in PVR also gained 6.4 percent.
However, among stocks that fell, India's GMR Infrastructure
Ltd fell 1.4 percent after Maldives cancelled its
biggest foreign investment project, a $511 million deal with GMR
to develop an international airport.
Shares in Apollo Hospitals Enterprise fell 8.1
percent a day after a source said brokerage CLSA is selling its
stake for $135 million.
Several block deals were struck in shares of Apollo
Hospitals in the range of 821.75-836 rupees on the BSE and NSE,
according to Reuters data.
For additional stocks on the move, double click
FACTORS TO WATCH
* Euro rises on optimism of U.S. fiscal cliff deal
* Oil up on US budget optimism, Middle East tension
* U.S. budget deal hopes buoy shares and commodities
* 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.....
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
For top Asian company news, double click on:
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Politics/General Asia Macro data
(Additional reporting by Abhishek Vishnoi; Editing by Prateek