Indian shares rose for the fourth day and closed 0.2 percent higher in a volatile session on Thursday, helped by gains in world stocks, and traders expect the volatility to continue as they eyed the unrest in Libya. The 30-share BSE index gained 0.23 percent, or 43.26 points, at 18,489.76 points, with 16 of its components gaining.
It fell as much as 1 percent at one stage, and later rose as much as 0.9 percent. The 50-share NSE index closed 0.3 percent higher at 5,536.20. "We just about managed to close in the green as world markets were not faring bad," said Sunder Subramaniam, senior manager of institutional sales at brokerage Sharekhan.
"But, trade may continue to be volatile and any negative feelers from here could bring the market down." The main index has gained 4.5 percent so far this week. The federal budget presented on Monday, stepped up social spending and Finance Minister Pranab Mukherjee forecast the economy would grow 9 percent in 2011/12 beginning April and inflation would ease.
It is, however, down nearly 10 percent year-to-date, with foreign funds pulling out $2.2 billion from Indian shares until February end. "All the major events on the domestic front are done for now. Engineering and construction firm Larsen & Toubro led the gains and closed up 3.2 percent, rising nearly 10 percent this week, on optimism that economic growth may mean higher order flow for the company. Financials closed mixed after food inflation in Asia's third-largest economy eased in mid February, following a drop in prices of vegetables and milk.
However, high headline inflation would still keep the pressure on the central bank to raise interest rates this month. Leading lenders State Bank of India and ICICI Bank shed 0.6 percen and 0.8 percent respectively, while HDFC Bank rose 2.7 percent.
Mortgage lender Housing Development Finance Corp gained 3 percent. Bajaj Auto raced ahead 1.2 percent after the No 2 motorcycle maker said on Wednesday its February sales rose 21.7 percent. In the broader market, gainers and losers were nearly equal in number, while 294 million shares changed hands on the BSE, higher than the 30-day daily average volume of 284 million shares.
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