* Benchmark BSE index up 0.4 pct; NSE index adds 0.31 pct
* Maruti Suzuki up nearly 6 pct to record high
* Investors seen building positions ahead of budget-analyst
By Indulal PM
MUMBAI, July 1 India's NSE index rose on Tuesday
to mark its highest close in nearly three weeks, approaching a
record high hit last month, as auto makers such as Maruti Suzuki
India surged after stronger monthly sales, while
overseas buying also helped.
Foreign institutional investors bought shares worth $214.42
million on Monday, their biggest single-day purchase since June
12, according to provisional exchange data. Overseas funds have
pumped in $9.9 billion so far this year, spurring a rally that
took the NSE index to a record high last month.
A firm trend from regional markets on upbeat manufacturing
data from China also helped. In India, the HSBC Manufacturing
Purchasing Managers' Index, compiled by Markit, advanced to 51.5
in June from 51.4 in May, expanding at the fastest pace in four
Investors were also seen churning portfolio and buying into
stocks such as infrastructure and capital goods, where the newly
elected government is likely to give more emphasis in its maiden
budget on July 10, traders said.
"Market is aligning itself for the budget, which will be the
next big event. We can see sector rotation. Budget is going to
be focused on infrastructure, strengthening of banks and
bringing out reforms in agriculture for larger growth. And those
stocks related to these sectors will be in the limelight for the
short-term," said Deven Choksey, managing director, KR Choksey
The broader NSE index ended 0.31 percent higher at
7,634.70 points, within touch of a peak of 7,700.05 hit on June
11, marking its highest close since June 12.
The benchmark BSE index gained 0.4 percent to
25,516.35 points, not far from the record high of 25,735.87 hit
on June 11, marking its highest closing since June 17.
Shares in Maruti gained 5.9 percent to a record high with
the biggest single-day gain since March 18 after it reported a
33.5 percent in monthly vehicle sales, which beat some analysts'
Mahindra and Mahindra Ltd gained 4.11 percent and
Tata Motors Ltd ended 4.52 percent higher.
Among other gainers, shares in Hindalco Industries Ltd
rose 6.73 percent after CLSA upgraded the stock to
"buy" from "sell" and raised its target price to 215 rupees from
Shares in other metal companies have also surged with the
BSE's metal index gaining 2.03 percent after London
copper hit its highest in nearly four months on Tuesday.
. Tata Steel Ltd gained 2.32 percent while JSW
Steel Ltd rose 2.64 percent.
Among capital goods stocks, Larsen and Toubro Ltd
closed 1.45 percent higher while BHarat Heavy Electricals Ltd
ended up 0.86 percent.
However, gains were limited as technology stocks fell on
profit-taking. Tata Consultancy Services ended 1.43
percent lower after gaining 12.84 percent in the previous month.
Wipro Ltd ended down 1.5 percent after it gained
7.9 percent in June.
For additional stocks on the move double click
FACTORS TO WATCH
* Euro back around $1.37 as ECB meets again
* Brent holds above $112 as China data draws focus back to
* European stocks get second half off to steady start
* 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.....
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
For top Asian company news, double click on:
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Forex news Global Economy news
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(Additional reporting by Abhishek Vishnoi; Editing by Sunil