* BSE up 1.65 pct; NSE adds 1.62 pct
* Investors expect December to yield higher returns
* Moody's says India's rating outlook is stable
(Updates closing levels, adds stocks, milestone)
By Manoj Dharra
MUMBAI, Nov 27 Indian shares posted
their biggest daily gain in more than two months as investor
sentiment turned positive on growing hopes the government would
push through reforms to stimulate growth and avoid a ratings
Expectations for higher returns in December also boosted
sentiment for shares.
The market also tracked global peers, which rose on new debt
targets for Greece and a political agreement on disbursing the
next instalment of aid. Sentiment was also helped by ratings
agency Moody's maintaining India's rating outlook at stable.
The market was eagerly awaiting a media briefing by Finance
Minister P. Chidambaram later in the day.
He is expected to outline the government's steps to push
through with economic reforms, though opposition lawmakers are
demanding the government roll back its plans to open up the
supermarket sector to foreign chains.
Moody's said on Tuesday the outlook on its Baa3 rating for
India is stable, citing the country's large, diverse economy and
strong gross domestic product growth as supportive of the
"A light market has risen on factors like Greece, increasing
support on reforms and Moody's statement. The finance minister's
press conference would be a further positive," said Vivek
Mahajan, head of research, Aditya Birla Money.
The BSE index was up 1.65 percent, or 305.07
points, at 18,842.08, its higest close since Nov. 8, and is just
295 points away from year high.
The 50-share NSE index gained 1.62 percent, or 91.55
points, to 5,727.45. Both the indices posted their biggest gains
since Sept. 21.
The stock market will be closed on Wednesday for a religious
Bank shares led the gains ahead of the November derivatives
expiry on Thursday. HDFC Bank Ltd rose 2.8 percent and
ICICI Bank Ltd gained 1.6 percent, while mortgage
lender HDFC was up 3 percent, .
Export-driven technology shares such as Infosys
rose 2.2 percent, helped by the recent weakness in the rupee,
which has dropped about 3.5 percent in November.
The rupee could remain under pressure in the near-term due
to a widening fiscal gap, with hopes diminishing for dollar
inflows as the parliament remains in a deadlock over reforms,
which could bring in much-needed foreign investment.
Shares in Pantaloon Retail India Ltd gained 3.5
percent, while Trent Ltd ended 0.3 percent higher, on
hopes the government will be able to garner support to clear the
opening of the supermarket sector, dealers said.
Wind turbine maker Suzlon Energy Ltd rose 10.7
percent after lenders agreed to restructure about 110 billion
rupees ($1.97 billion) of its debt, sources with direct
knowledge of the situation said.
Among stocks that fell, shares in private sector lender
Federal Bank Ltd fell 1.5 percent after L&T Finance
Holdings Ltd sold 7.99 million shares in the bank at
an average price of 453.37 rupees
For additional stocks on the move double click
FACTORS TO WATCH
* Euro pares gains, falls to session low vs dlr
* Brent rises above $111 after Greek debt deal
* Greek debt deal sends shares, euro higher
* 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:
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
(Additional reporting by Abhishek Vishnoi; Editing by Prateek