Indian shares pared early losses to end up 1.5 percent as investors covered short positions and on optimism ahead of a crucial vote in the German parliament that approved new powers for the eurozone's rescue fund. Autos and banking sector stocks led the rise. Private sector bank ICICI Bank ended 2.5 percent higher and top mortgage lender Housing Development Finance Corp closed 2.4 percent higher on bargain hunting.
The shares have lost 22 percent and 10.4 percent, respectively, so far this year, hurt by a series of interest rate increases by the central bank. The 30-share BSE index closed up 1.53 percent at 16698.07 points, with 23 components advancing, ahead of the German vote. The index had closed 0.5 percent lower on Wednesday after a heady rebound in the previous session.
Export-focused technology stocks rose, with IT bellwether Infosys Ltd gaining 3 percent, on hopes a weaker rupee would bode well for their earnings. The local unit has shed about 9 percent so far in the quarter. Automaker Tata Motors fell as much as 3 percent after a court ruled a West Bengal state government decision to return a piece of land to farmers from the present occupant Tata Motors was "constitutional and valid". It recouped in the session to close up 3.1 percent.
Tata Motors had planned to build a plant at Singur in the eastern state, where it wanted to make Nano - the world's cheapest car, but subsequently scrapped the project and moved it to the western state of Gujarat. The BSE auto index, which closed up 2.35 percent on Thursday, has shed more than 15 percent so far this year. The main index has lost about a fifth this year, making it one of the worst performing markets in the world, as a series of rate increases to battle high inflation hit corporate earnings growth.
Foreign funds bought Indian shares worth $51.49 million on Thursday. They are still net sellers of about $139.5 million so far in September. The 50-share NSE index closed up 1.41 percent at 5,015.45. There were 1.3 losers for every gainer in the broader section, with 684.1 million shares changing hands.
Comments
Comments are closed for this article.