* BSE up 0.23 pct; NSE adds 0.19 pct
* Retail shares rally ahead of parliament vote on FDI in
* Indian tech shares drop after Cognizant SEC filing
By Manoj Dharra
MUMBAI, Dec 5 Indian shares gained on Wednesday
for the sixth time in seven sessions on hopes the government
will muster a majority in parliament on a crucial vote to allow
foreign direct investment in multi-brand retail later in the
Shares in organised retailers such as Pantaloon Retail India
Ltd and Shoppers Stop rallied on hopes of a
favourable vote for the government.
Traders said optimism ahead of the parliament vote, that
will pay the way for more reforms, have triggered a rally in
mid-cap and small cap indexes and is a sign of structural
bullishness in the market.
"Markets remained cautiously optimistic before the eve of
the event in the Parliament," said Kaushik Dani, a fund manager
at Peerless Mutual Fund.
"Sentimentally, a lot of things are leaning towards what is
going to happen today."
The BSE index gained 0.23 percent, or 43.74 points,
to end at 19,391.86, its highest close since April 27, 2011.
The broader NSE index rose 0.19 percent, or 11.25
points, to end at 5,900.50 for the first time since April 13
2011, clearing the psychologically important 5,900 level.
Shoppers stop rose 7.53 percent, closing at
464.70, its highest since July 25, 2011, while Pantaloon Retail
gained 3.26 percent to end at 237.65, its highest
close since Sept. 22, 2011.
State Bank of India rose 1.44 percent after a
senior executive told reporters that the Indian government is
looking to infuse 40 billion rupees ($732 million) in the bank.
Other state-run banks that gained were Punjab National Bank
, which rose 3.42 percent and Bank of India,
which ended up 2.3 percent.
Tata Motors rose 1.25 percent, buoyed by a Morgan Stanley
report which maintained its 'overweight' rating and said it is
optimistic of a strong rebound in sales in the January to March
Property developer DLF Ltd jumped 4.5 percent,
posting its biggest gains since Oct. 4 on hopes of a strong
pick-up in launches in the second half of FY13, dealers said.
All major tyre makers gained. Apollo Tyres rose
2.25 percent, Ceat Tyres added 2.6 percent, MRF was up
4.13 percent, while JK Tyres & Industries was 4.4
The gains tracked a fall in the price of rubber, a key raw
material which constitutes nearly 40 percent of the production
cost of tyres. Rubber futures have fallen 6.4 percent
in five previous trading sessions.
However, technology shares fell on fears that Cognizant
Technology Solutions Corp may lower its revenue growth
guidance for 2013 based on compensation targets for top
Sentiment was also dampened by Cowen's downgrade of Infosys
Ltd to 'neutral' on Tuesday due to fears of a
protracted revenue growth recovery.
Infosys ended down 2.25 percent, Wipro Ltd fell
1.8 percent and HCL Technology dropped 1.4 percent.
For additional stocks on the move double click
FACTORS TO WATCH
* Euro falls to low against dollar after Spanish auction
* Brent rises above $110 on China growth hopes
* Shares rise on China hopes, euro hits 7-wk high
* 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
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(Editing by Prateek Chatterjee)