Financials lead rise in Indian shares
(Updates to mid-morning)
NEW DELHI, March 24 (Reuters) - Indian shares rose strongly on Monday morning, led by banks and financial stocks on hopes that U.S. financial markets may start getting better, but worries about rising inflation were seen as a constraint on gains.
Shares in second-largest lender ICICI Bank (ICBK.BO) rose 3.7 percent to 794.90 rupees, while top mortgage lender Housing Finance Development Corp (HDFC.BO) added 5 percent to 2,323 rupees, leading the gains in the main index.
Software firms, which get half of their revenue from the United States rose after the U.S. stocks rally on Thursday.
Bellwether Infosys Technologies (INFY.BO) was up 1.3 percent at 1358.05, while third-largest Wipro (WIPR.BO) added 3.4 percent to 389.50 rupees. The BSE IT index .BSEIT gained 1.26 percent.
"I think after Thursday's sharp fall in commodities some funds are shifting back to equities," said D.D. Sharma, vice-president at Anand Rathi Securities.
"Also, the currency outlook remains strong with the rupee expected to strengthen against the dollar. So investors at this level can benefit both ways with rock-bottom rupee levels and lower equities valuations."
At 11:05 a.m. (0535 GMT), the benchmark 30-share BSE index .BSESN was up 1.0 percent at 15,144.77, with 18 components rising. The index rose as much as 2.3 percent to a high of 15,338.23 as trade resumed after holidays on Thursday and Friday.
The 50-share NSE index was up 0.34 percent at 4,589.45.
But in the broader market, 1,789 losers outpaced 500 gainers on volume of 76 million shares.
"I expect a gradual pullback in the next two to three weeks ahead of the corporate results season," Sharma said, adding that advance tax numbers indicated good results. Indian companies start reporting March quarter results in April.
Elsewhere in the region, Karachi's 100-share index rose 1.33 percent to 15,193.53, but Colombo's All-share index .CSE eased 0.06 percent to 2,534.78.
STOCKS ON THE MOVE
* Drug maker Aurobindo Pharma Ltd (ARBN.BO) rose as much as 4.6 percent to a high of 259.90 rupees after it said it has concluded a deal to acquire Italy's Intellectual Property & Marketing Authorizations. The shares later reversed gains to be down 0.2 percent at 248 rupees 0605 GMT.
* Textile and chemicals firm GHCL Ltd (GHCH.BO) was up 9 percent at 80.30 rupees ahead of a board meeting to consider restructuring of the company.
TOP THREE BY VOLUME
* Reliance Natural Resources (RENR.BO) on 7.1 million shares
* Ispat Industries (ISPT.BO) on 4.5 million shares
* Reliance Petroleum RPET.BO on 3.5 million shares
FACTORS TO WATCH * For technical analysis double-click on www.reutersindia.net * Indian rupee up on rising stocks, gains seen muted [INR/] * Indian bond yields at 3-mth high as inflation up [IN/] * FOREX-Dollar gains vs euro as oil, gold slide [FRX/] * Oil falls 1.7 pct, nears $100 mark on profit taking [O/R] * Wall St Week Ahead: Stocks may rally anew on Fed optimism [.N] * For closing rates of Indian ADRs INADR (Reporting by Devidutta Tripathy; Editing by John Mair)
