April 2, 2013 / 11:16 AM / 5 years ago

India's BSE index ends above 19,000; Reliance, ADAG firms gain

* BSE ends 0.93 pct up, NSE 0.77 pct higher
    * Reliance Industries, Reliance Comm in $221 mln telecom
    * Sun Pharma gains on report of price hike by unit

    By Manoj Dharra
    MUMBAI, April 2 (Reuters) - Indian shares gained for a
fourth consecutive session on Tuesday as investors focused on
March-quarter earnings, with Anil Ambani group firms surging
after a pact with a unit of Reliance Industries sparked hopes of
wider co-operation between the two groups.
    Shares in companies controlled by the Anil Dhirubhai Ambani
Group (ADAG) rose sharply in late trade after group firm
Reliance Communications Ltd entered into a pact with a
unit of brother Mukesh Ambani's Reliance Industries Ltd 
 for sharing the company's optic fibre network.
    Reliance Communications ended 11.22 percent higher, while
Reliance Infrastructure gained 3.8 percent. 
    Reliance Industries ended nearly 2 percent higher.
    "It's a good directional call taken by both Ambani groups
leveraging each other's requirements and strengths and working
together," said Deven Choksey, managing director at KR Choksey
    "This may help the short-covering rally in the market in
April but sustenance depends on how the government acts on
reforms," he added.
    Gains were also boosted after European shares extended gains
when new data showed the region's factory activity was no worse
than originally estimated in March.
    The government has reiterated its commitment to reforms but
investors remain worried about potential political instability
after a key ally pulled away from the ruling coalition last
    The benchmark BSE index ended up 0.93 percent, or
176.20 points, at 19040.95, its highest close in almost
two-and-a-half weeks. It has gained 1 percent over the previous
three sessions, closing above the psychological 19,000 level.
    The broader NSE index rose 0.77 percent, or 43.70
points, to 5,748.10.
    Select blue-chips also rose on hopes of good March-quarter
    Reliance's shrinking valuation premium to peers may be
helpful in allowing the shares to track market performance in
the near term, Barclays said in a note, adding that it expects
Reliance to report a net profit of 55.65 billion rupees in
Jan-March, up 1 percent-on-quarter.
   Shares in  Sun Pharmaceutical Industries Ltd gained
4.76 percent after Nomura said URL Pharma, the unit it acquired
from Takeda Pharmaceutical Co Ltd, has significantly
raised prices of a drug, dealers said. 
    Larsen & Toubro gained 1.9 percent after the
company said its construction division secured new orders valued
over 37 billion rupees in March. 
    Maruti Suzuki rose 1.9 percent after reporting a
lower-than-expected fall in March vehicle sales. 
    However, Bajaj Auto shares lost 1.61 percent after
reporting a 10 percent fall in March vehicle

 (Additional reporting by Abhishek Vishnoi; Editing by Sunil

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