Indian shares rose 1.2 percent on Wednesday, a day ahead of the expiry of monthly derivative contracts, buoyed by firm global markets, but volumes were slack as the year-end holiday season saw most investors staying light. Hindustan Unilever Ltd jumped 3.5 percent on a report in the Mint daily India's largest maker of household products and consumer goods had put a property in Mumbai for sale.
The asset was expected to fetch 2.2-2.5 billion rupees ($49-$55 million), the report added. Financial lenders rallied, aided by short selling ahead of the expiry, dealers said. Investors are upbeat about the sector on expectations India's fast-growing economy will drive a strong loan demand.
The 30-share BSE index ended 1.15 percent, or 230.6 points, higher at 20,256.03 points, with 27 components gaining ground. The 50-share NSE index ended up 1.1 percent at 6,060.35 points. Foreign funds have been net sellers of about $500 million this month through Monday, but for the year, they have purchased a record $28.5 billion of Indian equities.
On Wednesday, HDFC Bank rose 3.2 percent and mortgage lender Housing Development Finance Corp climbed 2.4 percent. Top lender State Bank of India gained 0.9 percent, while No 2 ICICI Bank added 1.3 percent. Metal counters shone, reflecting a rally in global base metal prices on a weaker dollar, dealers said.
Aluminium and copper producer Hindalco Industries gained 1.7 percent, while Sterlite firmed 3.4 percent. India's top mobile operator Bharti Airtel rose 3.5 percent on Wednesday after adding very little in the previous session following a 2-percent fall on Monday.
Energy major Reliance Industries, which has the highest weight in the main index, closed up 0.1 percent at 1,048.30 rupees. Software services firm Wipro fell 0.7 percent after rising 1.3 percent in the previous session, but larger rivals Tata Consultancy and Infosys were up 0.9 percent and 0.5 percent, respectively. In the broader market, gainers outnumbered losers in a ratio of 1.65 to 1, on a total volume of about 275 million shares.
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