Indian shares climb

Indian shares rose nearly 1 percent on Friday, led by gains in index heavyweights Reliance Industries and ICICI Bank, and helped by gains in Asian markets as bargain hunters scooped up beaten down stocks. Indian shares buoyed by gains in international markets, with investors hunting for bargains in beaten down stocks, even as worries over high inflation and rising interest rates persist.
The main stock index was up 0.9 percent in tandem with firmer Asian markets. Foreign funds have bought Indian shares worth $269.95 million on May 26, but have been net sellers of $1.52 billion so far in May. The main 30-share BSE index was up 0.93 percent at 18,213.14 points by 10:46 am (0516 GMT), after having risen as much as 1.1 percent, with all but five of its components in the positive zone.
The benchmark is down 0.6 percent for the week. The 50-share NSE Index rose 0.82 percent to 5,456.30 points. In the broader market, gainers led losers in the ratio of 2.8:1 on a total volume of about 154 million shares on the NSE. "Investors are looking for an opportunity to enter into the market to pick up beaten down stocks but I strong believe these gains will fizzle out sooner than later," said Jagannadham Thunuguntla, head of research at SMC Global Securities. The BSE index is down 11.2 percent so far this year with worries about inflation and high interest rates in Asia's third-largest economy, and the eurozone debt crisis reducing appetite for risky assets.
Shares in ICICI Bank rose 2.6 percent to 1,052 rupees and Reliance Industries advanced 1.2 percent to 945.40 rupees on value buying. The two stocks have fallen 8 percent and 5 percent, respectively, this month to Thursday. Tata Motors shares fell as much as 6.2 percent to their lowest level in three months after the company warned on Thursday competitive pressures and high input costs were challenges. It was the biggest loser in the benchmark index and was trading down 5.5 percent at 1,098.20 rupees. Traders said the company's profit margins would be under pressure in the next few quarters due to rising raw material costs.