Indian shares edge higher; defensives surge

Fri Jun 27, 2014 6:42am EDT

* BSE index gains 0.15 pct; NSE ends 0.21 pct higher
    * Century Textile rallies after investor Damani buys stake
    * Aban likely to launch up to $150 mln share sale on Friday
- sources
    * Ranbaxy gets FDA approval for Novartis's Diovan generic

    By Abhishek Vishnoi
    MUMBAI, June 27 (Reuters) - Indian shares rose on Friday as
defensive stocks such as Sun Pharmaceutical Industries 
and Ranbaxy Laboratories jumped on the U.S.
regulator's approval for a key drug while IT stocks gained after
rival Accenture Plc reported robust quarterly revenue
growth.
     Broader gains were however capped as Asian shares were
mostly in the red on Friday, weighed down by a weak performance
on Wall Street and doubts about the strength of the U.S.
economy, which pushed bonds higher. 
    Also, overseas investors sold Indian shares worth 6.01
billion rupees ($100.67 million) on Thursday, marking their
biggest single day of sales since March 10, provisional exchange
data showed.
    Traders said markets may remain range-bound in the near term
amid the backdrop of government deferring a key gas price hike
decision while a lagging monsoon and the newly-elected
government's maiden budget on July 10 also added to uncertainty.
    "Volatility will be higher as we move closer to the federal
budget day. We may see investors reallocating portfolio ahead of
the budget and fresh buying could emerge in infrastructure,
power and capital goods stocks," said Suresh Parmar, head of
institutional equities at KJMC Capital Markets. 
    The benchmark BSE index rose 0.15 percent, or 37.25
points, to end at 25,099.92, notching up a weekly fall of 0.02
percent. 
    The broader NSE index rose 0.21 percent, or 15.60
points, to end at 7,508.80, closing above the psychologically
important 7,500 level and marking a decline of 0.03 percent for
the week. 
    Both indexes posted a third consecutive weekly fall.
    India's infrastructure output data for May, due on Monday,
and manufacturing PMI on Tuesday would also be watched, traders
said.
    Ranbaxy Laboratories rose 5.2 percent after the company
received approval from the U.S. Food and Drug Administration to
launch a cheaper copy of Novartis AG's blood pressure
pill Diovan, bolstering its outlook. 
    Sun Pharmaceutical Industries, which is in the process of
acquiring Ranbaxy for $3.2 billion, also ended 4.1 percent
higher.
    Software companies gained as a better-than-expected rise in
quarterly revenue by Accenture Plc sparked hopes of a
robust demand environment, dealers said. 
    While bellwether Infosys Ltd gained 1.3 percent,
others big names such as Tata Consultancy Services Ltd,
Wipro, HCL Technologies and Tech Mahindra
 gained 2-4 percent.
    Among defensives, India's largest cigarette manufacturer ITC
Ltd rose 1.1 percent.
    Century Textile and Industries Ltd rose 2.4
percent after Derive Investments, a company owned by high net
worth individual Radhakishan Damani, bought a stake in the
company in a block deal on Thursday. 
    However, among decliners, Aban Offshore Ltd ended
1.5 percent lower ahead of a likely share sale to raise as much
as $150 million on Friday. 
    Gail (India) Ltd ended 0.7 percent lower after 14
people were killed and 20 injured on Friday in a blast and fire
at a gas pipeline in Andhra Pradesh, again raising safety
concerns over the country's energy projects. 
    
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Dollar falls for second week, Kiwi charges higher      
* Oil steadies around $113 as Iraq supply worries ease    
* Asian shares slip, global bond yields down        
* 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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 (Additional reporting by Indulal PM; Editing by Sunil Nair)
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