* BSE index gains 0.17 pct; NSE index up 0.2 pct
* Blue-chips gain; SBI up 2.2 pct
* Steel stocks down; Tata Steel ends 1.6 pct lower
By Indulal PM
MUMBAI, Aug 21 Indian shares edged higher on
Thursday, gaining for seven out of eight previous sessions, as
persistent buying by foreign investors continued to bolster blue
chips such as State Bank of India.
The broader NSE index has hit record highs in each
of the previous three sessions, reflecting continued optimism
about corporate earnings and a recovery in the domestic economy
Good foreign buying has come despite an uncertain global
environment, with data on Thursday showing China's vast factory
sector slowed to a three-month low in August.
Overseas investors bought shares worth of $41.4 million on
Wednesday, continuing their buying streak for the fifth straight
session, exchange and regulatory data showed. They have bought a
net $12.64 billion into Indian shares so far this year.
"Markets are getting into the expiry mood as we are nearing
the derivative contracts expiry. We will see stock-specific
action. I feel enough money is waiting to enter into the market.
It is a buy-on-dip market," said Jagannadham Thunuguntla, head
of research and chief strategist at SMC Global Securities Ltd.
The broader NSE index ended 0.2 percent up at
7,891.10, not far off from the record high of 7922.70 hit on
The benchmark BSE index closed 0.17 percent higher
at 26,360.11, also within touch of the record high of 26,530.67
hit on Tuesday.
Blue-chips led the gains. State Bank of India closed 2.2
percent higher, while Bajaj Auto Ltd ended 3.2 percent
up and Sun Pharmaceutical Industries Ltd added 1.5
State-run oil marketing companies have also gained on the
back of weak crude prices. Brent crude oil slipped below
$102 a barrel on Thursday, near a 14-month low, on evidence of
plentiful fuel supplies and Chinese economic data pointing to
Indian Oil Corp Ltd gained 3.8 percent, Hindustan
Petroleum Corp Ltd ended 4.4 percent higher and Bharat
Petroleum Corp Ltd added 2.8 percent.
Among other gainers, Titan Co Ltd added 5.9
percent after Morgan Stanley upgraded the watches and jewellery
maker to "overweight" from "equal-weight," citing the strength
of its Tanishq jewellery brand and its potential to gain market
However, shares in steel companies ended lower on weak
Chinese data and reports of an increase in iron ore royalty.
Tata Steel Ltd closed 1.6 percent lower, while JSW
Steel Ltd ended down 0.83 percent.
For additional stocks on the move double click
FACTORS TO WATCH
* FOREX-German data brings relief to euro, dollar rise stalls
* Oil falls towards 14-month low near $101 on ample supply
* Euro struggles at 11-month low as dollar reigns supreme
* 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:
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
(Editing by Anand Basu)