* Investors take long positions after two-week, 7.2 pct
drop
* Sun Pharma plunges after authorities seize U.S. unit
drugs
(Updates to mid morning)
MUMBAI, June 26 (Reuters) - India's main stock index rose
0.8 percent on Friday as investors built long positions after a
7.2 percent drop over the past two weeks and strong Asian
markets providing support.
Energy giant Reliance Industries (RELI.BO), private-sector
lender ICICI Bank (ICBK.BO) and engineering and construction
firm Larsen & Toubro (LART.BO) led the gains.
Sun Pharmaceutical Industries (SUN.BO) tumbled as much as
17.6 percent after U.S. officials said authorities seized all
medicines produced by its Caraco Pharmaceutical Laboratories
(CPD.A) unit, following repeated violations of manufacturing
standards. [ID:nBOM318565]
By 11:19 a.m. (0549 GMT), the 30-share BSE index .BSESN
was up 0.8 percent at 14,454.26 points, with 21 stocks
advancing.
"The market has come off its highs in the past two weeks or
so, and any good news from now on will only lead to investors
taking up long postions," Hitesh Agrawal, head of research at
Angel Stock Broking, said.
The benchmark snapped a 14-week, 83 percent jump, last week
as investors took profits. There are also worries a
below-normal monsoon forecast will hurt demand in the crucial
rural heartland and hit corporate profitability.
Investors are, however, pinning hopes the government's
budget on July 6 will unveil pro-market reforms such as
privatisations and relaxation of foreign investment rules.
"Everyone is eyeing the budget, and some may just take a
shot at the budget expectations being met. So we could see a
rally of about 700 points over the next week," Agrawal said.
Larsen climbed 3.4 percent to 1,579.50 rupees, while ICICI
Bank rose 3.2 percent to 721.35 rupees.
Reliance, which has the most weight in the main index,
advanced 1.3 percent to 1,984.10 rupees.
Sun Pharma, the country's largest drugmaker by market
value, was down 12 percent at 1,142.65 rupees.
In the broader market, gainers led losers by almost 2 to 1
on relatively moderate volume of 109.4 million shares.
The 50-share NSE index was up 1 percent at
4,282.65.
Asian shares were higher on Friday, with Japan's Nikkei
.N225 up 1 percent, while MSCI's measure of other Asian
markets .MSCIAPJ rose 1.4 percent.
MAIN TOP 3 BY VOLUME
* IFCI (IFCI.BO) on 7.6 million shares
* Reliance Natural Resources (RENR.BO) on 3.9 million
shares
* Jaiprakash Hydro (JAPR.BO) on 3.7 million shares
STOCKS ON THE MOVE
* Non-ferrous metals firm Sterlite Industries (STRL.BO)
rose 1.9 percent to 588 rupees after copper prices in Shanghai
rose for a fourth straight session on Friday. [ID:nMAN498771]
* Tata Steel (TISC.BO) fell as much as 1.6 percent to
391.60 rupees after the world's sixth-largest steelmaker
reported a 60 percent drop in 2008/09 consolidated net profit,
missing market forecasts. [ID:nBOM474435]
The stock later pared losses to trade down 0.4 percent at
396.25 rupees.
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee strengthens as shares gain, oil eyed
[INR/]
* Indian bond yields edge lower, auction in focus
[IN/]
* Dollar drops on Fed relief, kiwi falls after data
[FRX/]
* Oil rises above $70 on Nigeria attacks, econ hopes [O/R]
* Shares rise, dollar falls as confidence mends [MKTS/GLOB]
* Wall St rallies on Bernanke relief, consumer shares
[.N] * For closing rates of Indian ADRs
INADR (Reporting by Pratish Narayanan; Editing by
Ranjit Gangadharan)
