* Infosys, HDFC lead gains; FIIs invest $313.82 mln in Dec
* Global market cues aid local shares; Europe meet in focus
* End of parliament logjam over retail reforms aids
(Updates to close)
By Anurag Kotoky
NEW DELHI, Dec 7 Indian shares rose 0.43
percent on Wednesday, as global equities gained on growing hopes
of a decisive solution to the euro zone debt crisis soon, while
data showing foreign funds' resumption of investing in local
shares this month supported sentiment.
Investors also cheered an end to the parliament logjam,
after government suspended its move to open the country's $450
billion supermarket sector to foreign firms in the face of a
huge political backlash, which had seen the opposition
disrupting parliament for two weeks.
Software services firm Infosys, which has the
second highest weightage on the benchmark index, and Housing
Development Finance Corp were among the top gainers.
"I think the only thing driving the market is hope. Hope
that something will happen in Europe," said Arun Kejriwal,
strategist at research firm KRIS.
The main 30-share BSE index closed up 71.73 points
at 16,877.06, with more than two-thirds of its components
closing in the green. The index, which rose as much as 1.2
percent earlier, is still down 17.7 percent this year.
"The fact is that 11 months are over, and we are still
negative. It clearly shows the feeling that has been there in
the market, the underperformance. Foreign investors were not
interested in buying," Kejriwal said.
Foreign funds have invested $313.82 million in Indian shares
so far this month. In 2011, they have pulled out about $186.33
million, data from the capital markets regulator, Securities and
Exchange Board of India showed.
Lenders rose on hopes that a cycle of rate increases, which
started in March 2010, may be paused when India's central bank
meets next week, and on the view that the central bank would
take measures to support liquidity when required.
Mortgage lender HDFC gained 2.02 percent to 675.55
rupees. India's biggest lender State Bank of India rose
1.8 percent, while HDFC Bank gained 1 percent.
Majority of the fund managers believe that allocation
towards Indian equity markets at current levels should be
increased with an investment horizon of one year and above, a
quarterly fund managers survey by ICICI Securities released on
Most of the fund managers expect the equity markets to be in
the range of 16,000-18,700 points by the end of March 2012, as
earnings growth expectations have been lowered. Even as
valuations are more reasonable, a majority of them are cautious
in the short-term, the survey showed.
Export-driven software firms, which count Europe as their
second-biggest market, gained on hopes that a stable euro zone
will aid deal flow, contributing the most as a single sector to
the index's gains.
Industry bellwether Infosys gained 2.14 percent, while
smaller rival Wipro added 3.6 percent.
Growing optimism that euro zone leaders are on track to
produce a confidence-boosting package of measures to solve the
debt crisis at their weekend summit lifted risk appetite on
Wednesday, with the euro and the global equity markets also
The broader 50-share NSE index rose 0.47 percent to
There were almost equal gainers and losers in the broader
market. About 611.5 million shares changed hands.
At 1020 GMT, the FTSEurofirst 300 index of top
European shares was up 0.64 percent. World stocks, as measured
by the MSCI world equity index, rose 0.50
STOCKS THAT MOVED
* Indiabulls Real Estate fell 9.8 percent a day
before the date for determining its shareholders' entitlement in
Indiabulls Infrastructure and Power (IIPL), which was created
following the spin-off of the real estate firm's power unit.
It fell as buyers, who had acquired the stock mainly with a
view to getting the benefit of shares in the
new company, sold them, as shares bought on Wednesday will not
be entitled to additional shares of IIPL.
* Future Capital Holdings rose 7.1 percent after a
newspaper report said Deccan Chronicle Holdings was
acquiring a controlling stake from Pantaloon Retail in
the group's financial services firm for 6-7 billion rupees
Pantaloon later denied any such transaction "at this stage."
* McNally Bharat Engineering jumped as much as 1.3
percent, after the civil engineering firm said it got two orders
worth 1.44 billion rupees.
TOP THREE BY VOLUME
* Indiabulls Real Estate on 39.4 million shares
* IFCI on 16.8 million shares
* Suzlon on 16.4 million shares
FACTORS TO WATCH
* Indian rupee report
* Indian bond report
* Euro firms vs dollar on cautious summit optimism
* Brent rises above $111 on weaker dollar
* Cautious optimism on EU deal lifts stocks, euro
* Wall St rises on EU summit hopes
* For closing rates of Indian ADRs
(Editing by Malini Menon)
(firstname.lastname@example.org)(+91 11 4178 1024)(Reuters
($1 = 51.4125 Indian rupees)
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S.E. Asia....... Hong Kong... Taiwan....
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Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
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(Reporting by Anurag Kotoky; editing by Malini Menon)