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Indian shares gain for a third day; key ally to support vote in upper house
December 6, 2012 / 11:58 AM / 5 years ago

Indian shares gain for a third day; key ally to support vote in upper house

* BSE index gains 0.49 pct; NSE ends 0.52 pct higher
    * FDI vote in upper house holds key
    * Tech shares fall for the second day

    By Abhishek Vishnoi
    MUMBAI, Dec 6 (Reuters) - Indian shares rose for a third day
after a key government ally said it would support foreign direct
investment in supermarkets in a vote on Friday in the upper
house of parliament.
    Shares were down for most of the day before rebounding on
news the Bahujan Samaj Party (BSP), which had abstained in the
lower house, would support the government's move to allow FDI in
retail, which may help tilt the vote in the government's favour.
    The government won the vote in the lower house on Wednesday,
but is in minority in the upper house. 
    Gains were led by a rebound in rate-sensitive stocks such as
ICICI Bank on hopes of traction in pension and
insurance bills after FDI in retail gets cleared.
    "The market got a boost from BSP chief Mayawati's statement
which coincided with a positive European share opening," said
Dhananjay Sinha, co-head of institutional research at Emkay
Global Financial Services.
    Vote on FDI in retail remains the key that will decide the
market's direction in near term, added Sinha.
    The BSE index rose 0.49 percent, or 94.94 points,
to end at 19,486.80, to mark its highest close since April 26,
    Earlier in the session, shares fell on profit-taking after
the index had gained over 5 percent in the previous nine
sessions since the start of the winter session of parliament in
late November.
    The broader NSE index rose 0.52 percent, or 30.40
points, to end at 5,930.90.
    Among the gainers, ICICI Bank ended up 1.42 percent, while
Tata Motors rose 2.15 percent.
    Shares in Pantaloon Retail rose 1.04 percent after
the BSP's announcement. India's top retailer has surged 62.4
percent since Sept. 14, when the government approved 51 percent
FDI in multi-brand retail.
    Shoppers Stop, which operates the Hypercity retail
chain, rose 0.7 percent. The stock has gained 32.1 percent since
the reform move was announced. 
    Shares in fertiliser makers such as Rashtriya Chemicals
 rose on expectations that the central cabinet will
approve a cost-friendly investment policy for
    Rashtriya Chemicals rose 2.65 percent, National Fertilizers
 gained 2.7 percent, Tata Chemicals rose 1.6
    Among stocks that fell, GMR Infrastructure closed
1.25 percent lower after a Singapore court ruled in favour of
the Maldives on Thursday, over the South Asian island nation's
move to cancel a $511 million airport development contract with
the Indian company. 
    Technology shares fell for a second day, with Cognizant's
SEC filing clouding revenue outlook for the sector.
    Infosys Ltd ended down 1.86 percent, Tata
Consultancy Services fell 1.33 percent, while HCL
Technology lost 2.1 percent.
    Cognizant Technology Solutions Corp, in a filing to
the SEC on Tuesday, said its top executives will receive 100
percent of their performance-linked shares if the company
achieves revenue of $8.5 billion next year, a 16 percent rise
over its projected 2012 revenue. 
    For additional stocks on the move double click       
   FACTORS TO WATCH                                             
* Euro eases before ECB, vulnerable to further losses     
* Oil steady below $109, eyes on Mideast, economy          
* Stocks edge higher before ECB meeting              
* 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 

 (Additional reporting by Manoj Dharra; Editing by Prateek

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