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Indian shares end higher ahead of festive season
October 18, 2012 / 11:30 AM / 5 years ago

Indian shares end higher ahead of festive season

* BSE rises 0.97 pct; NSE adds 1.03 pct
    * Banking shares lead gains
    * TCS, ITC earnings on Friday

    By Manoj Dharra
    MUMBAI, Oct 18 (Reuters) - Indian shares rose on Thursday as
auto makers and property developers gained on hopes of increased
sales of big-ticket items during the looming festival season,
while lenders rose on hopes of higher retail loan demand.
    Domestic shares gathered momentum after a slew of Chinese
data boosted optimism about the health of the world's
second-largest economy, sending Asian indexes higher. 
    Earnings results will continue to impact sentiments in the
near term, with Tata Consultancy Services Ltd and ITC
Ltd due to report results on Friday.
    Amid increased volatility due to the earning season,
investors are also focussing on the central bank's stance on
interest rates at its next meeting on Oct. 30. 
    "It's a pre-Diwali cheer in the market. A lot depends on the
announcements and direction from New Delhi," said P. Phani
Sekhar, fund manager-PMS at Angel Broking.
    "We believe the floor of the market is around 5,400,
although any immediate upside looks difficult. Earnings seem to
be more or less discounted."
    The BSE index rose 0.97 percent, or 181.16 points,
to 18,791.93.   
    The 50-share NSE index rose 1.03 percent, or 58.45
points, to 5,718.70.
    Shares in banks, property and auto gained on hopes of higher
consumer spending during the Dussehra festival on Oct. 24 and
the Diwali festival in mid-November, which are considered
auspicious times to buy big-ticket items such as vehicles and
property. 
    State bank of India gained 2.9 percent while
private lender Axis Bank rose 4.2 percent.
    Property developer DLF ended 2 percent up, while
India Bulls Real-estate gained 7.5 percent. 
    Sobha Developers rose 2.3 percent. Private equity
firm Sun-Apollo will invest up to $50 million in projects
developed by Indian real estate company Sobha Developers,
sources with direct knowledge of the matter told Reuters.
 
    Tata Motors rose 2 percent, while two-wheeler
maker Hero MotoCorp added 1.8 percent.    
    Cement maker ACC Ltd ended 0.8 percent lower after
July-September profit missed market estimates.
    ACC reported a 57 percent jump in net profit at 2.49 billion
rupees. Analysts expected a profit of 2.87 billion rupees on
revenue of 25.55 billion rupees, according to Thomson Reuters
I/B/E/S. 
    United Breweries fell 1.5 percent after UBS
downgraded the stock to 'sell' from 'buy' and cut its target
price to 625 rupees from 650 rupees. 
    Shares in Sun Pharmaceutical Industries fell 1.6
percent on worries the drug maker will soon see an end to its
temporary arrangement to supply cancer drug Doxil in the United
States.  
    Bharti Airtel fell 1.7 percent after the Telecom
Commission recommended mobile phone carriers give up all their
airwave holding in the 900 mega hertz band at the time of their
permit renewals. 
    The move is opposed by the wireless industry which says it
will cost about $24 billion more in capital outlay.
   Ahead of Friday's earnings, cigarette maker ITC rose
1.16 percent while TCS gained 1.9 percent.
    TCS is expected to report a 35 percent rise in quarterly
profit at 33.1 billion rupees, Thomson Reuters data showed,
while its CEO N. Chandrasekaran is bullish about the company's
performance. 
   The outlook is "looking good, looks positive, there's no
negative news," he said on Sept 25. 
    
    FACTORS TO WATCH                                            
* Euro rises to 5-month high versus yen                   
* Oil steady above $113 after China data soothes           
* European shares steady on China data               
* 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       

 

 (Additional reporting by Abhishek Vishnoi; Editing by
Subhranshu Sahu)

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