AGL 38.15 Increased By ▲ 0.90 (2.42%)
AIRLINK 121.51 Decreased By ▼ -2.51 (-2.02%)
BOP 5.85 Increased By ▲ 0.23 (4.09%)
CNERGY 3.75 Increased By ▲ 0.03 (0.81%)
DCL 8.40 Increased By ▲ 0.15 (1.82%)
DFML 40.89 Increased By ▲ 0.62 (1.54%)
DGKC 84.60 Decreased By ▼ -1.14 (-1.33%)
FCCL 32.70 Increased By ▲ 0.10 (0.31%)
FFBL 65.50 Decreased By ▼ -1.00 (-1.5%)
FFL 10.05 Decreased By ▼ -0.11 (-1.08%)
HUBC 103.80 Increased By ▲ 0.70 (0.68%)
HUMNL 13.25 Decreased By ▼ -0.15 (-1.12%)
KEL 4.43 Increased By ▲ 0.18 (4.24%)
KOSM 7.09 Decreased By ▼ -0.09 (-1.25%)
MLCF 37.50 Decreased By ▼ -0.80 (-2.09%)
NBP 60.25 Decreased By ▼ -4.76 (-7.32%)
OGDC 172.25 Decreased By ▼ -1.55 (-0.89%)
PAEL 24.80 Decreased By ▼ -0.10 (-0.4%)
PIBTL 5.70 Decreased By ▼ -0.10 (-1.72%)
PPL 141.69 Decreased By ▼ -1.01 (-0.71%)
PRL 22.72 Decreased By ▼ -0.26 (-1.13%)
PTC 14.74 Decreased By ▼ -0.37 (-2.45%)
SEARL 64.56 Decreased By ▼ -0.79 (-1.21%)
TELE 7.14 Increased By ▲ 0.14 (2%)
TOMCL 35.50 Decreased By ▼ -1.41 (-3.82%)
TPLP 7.29 Decreased By ▼ -0.05 (-0.68%)
TREET 14.20 Decreased By ▼ -0.08 (-0.56%)
TRG 51.75 Increased By ▲ 2.05 (4.12%)
UNITY 26.60 Increased By ▲ 0.45 (1.72%)
WTL 1.22 Decreased By ▼ -0.02 (-1.61%)
BR100 9,483 Decreased By -118.3 (-1.23%)
BR30 28,371 Decreased By -202.1 (-0.71%)
KSE100 88,967 Decreased By -1319.8 (-1.46%)
KSE30 27,827 Decreased By -515.9 (-1.82%)

Indian shares gained more than three percent on Monday after the appointment of a pro-reform finance minister, recouping last week's heavy losses as concerns about the direction of the new government's policies faded.
But the stock market is still down five percent since the communist-supported Congress party surprised pundits with an election win 11 days ago. It has lost nearly 14 percent since it became clear the previous government might struggle to win.
The rupee was flat, recovering after Finance Minister P. Chidambaram said he was committed to cutting deficits. Bonds were broadly steady, with traders awaiting details of his borrowing plans.
In his first news conference since getting the job, Chidambaram said he would continue reforms. As finance minister in an earlier government, he had carried on with reforms started in 1991 by Manmohan Singh, India's new prime minister.
"Chidambaram has proved himself and the markets have accepted him in the past. But how much will he be able to deliver under a coalition government is to be seen," said Paras Adenwala, head of equity funds at Birla Sun Life Mutual Fund. "Overall, I am happy that things are moving. We have a government in place."
The top-30 share benchmark Bombay Stock Exchange index gained 3.3 percent to close at 5,123.23 points, led by software, cement, steel, banking and energy companies.
Shares took a roller-coaster ride last week, swinging from despair that a government supported by far-left parties may struggle to push through reforms to relief over the naming of the architect of India's economic restructuring as prime minister.
The index plunged 16.6 percent at one point last Monday, but has now more than recouped the loss.
News that ministers from the Dravida Munnetra Kazhagam party, a key coalition ally, were unhappy with their cabinet portfolios and refused to take up their jobs did not seem to stir the market. "Investors are buying cement on expectations that the government will spend more money on building roads in rural areas," said Pawan Dharnidharka, a Bombay exchange sub broker.
Gujarat Ambuja Cements and Associated Cement Companies both gained over 2.5 percent.
Amid talk of more farm investment, tractor maker Mahindra & Mahindra gained 6.4 percent and Punjab Tractors added 2.4 percent.
Software firm Infosys rose eight percent while HCL Technologies leapt 10 percent. Apart from their relative insulation from government policies, Dharnidharka said tech stocks were also benefiting from a stabilising rupee.
In afternoon trade, the rupee was at 45.33 per dollar, firmer than the day's 45.39 low but still slightly weaker than Friday's close of 45.30.
After hitting a four-year high in April, it plumbed an eight-month low against the dollar last Monday on fears that foreign funds would pull out of India.
The 10-year bond yield rose marginally to 5.1766 percent.
Rupee and bond investors have been shaken by heavy foreign selling. Foreign funds dumped a net $720 million of shares in the 13 sessions to Thursday, a sixth of what they had invested in 2004 before the political landscape changed.
"Chidambaram will be capital-market-friendly. He knows the need for new investments. He will do things to bring about confidence among foreign funds," said Arun Kejriwal, director at research firm KRIS. "The message that goes out to India and the rest of the world is that we are back in business.
"But mere statements won't help and the market will want more action on the ground," said Srividhya Rajesh, a portfolio manager with Sundaram Mutual Fund.
"The market is waiting to see what concrete measures the government has for farm sector reforms, how much more will spend of infrastructure and how will it generate more jobs and balance politics and economics.
Merrill Lynch cuts its Indian stocks rating to "market weight" from "overweight", saying investors should wait to see what the new leaders do.
Besides policy, investors will keep an eye on what coalition partners say in the run-up to the budget in late June or July.

Copyright Reuters, 2004

Comments

Comments are closed.