Monday, November 29, 1999

BSE Sensex rises 7th day; Reliance, L&T gain

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The BSE Sensex climbed on Thursday for the seventh consecutive session in its longest winning run in 10 months, driven by expectations for robust corporate earnings growth and improving global risk appetite.Foreign funds, which are a trend-setter for the market, have moved $588 million into Indian equities in June, with the inflow picking up after data last week showed factory output expanded 17.6 percent in April.The 30-share BSE index rose 0.88 percent, or 153.82 points, to 17,616.69, its highest close since April 27. The benchmark has gained 6 percent over seven sessions, its best run since August 2009.Twenty-three of its components closed in the green."Unless there is any new bad news from overseas, we should be able to hold on to the gains," said Rakesh Rawal, who manages $1 billion as head of private wealth management at Anand Rathi Financial Services.Engineering and construction conglomerate Larsen & Toubro Ltd and energy major Reliance Industries Ltd led the gainers as a rapidly expanding economy boosted their outlook.Reliance, which has the highest weight on the Sensex, rose 1.3 percent, ahead of its annual general meeting on Friday. Larsen rallied 3.3 percent, its biggest one-day rise in a month.Advance tax paid by Reliance for the June quarter was more than double a year earlier, while Larsen's payment was up 18 percent, provisional data showed.The BSE index is up 0.9 percent in 2010, with foreign funds buying a net of more than $5 billion in the period. Debt problems in the euro zone had triggered an outflow of $2 billion in May, but investor sentiment has now improved.In 2009, the benchmark had jumped 81 percent on foreign inflows of a record $17.5 billion.Financials rose as food and fuel price inflation in Asia's third-largest economy slowed in early June, easing pressure on the Reserve Bank of India (RBI) to speed up its process of tightening monetary policy.Leading private sector lenders ICICI Bank and HDFC Bank rose 0.7 percent and 1.3 percent respectively.State-run explorer Oil & Natural Gas Corp was up 1.8 percent after the Hindustan Times reported a panel of ministers to look into freeing of fuel prices could meet next week.In the broader market, gainers outnumbered losers in a ratio of 1.1:1 on volume of 367 million shares.The 50-share NSE index rose 0.8 percent to 5,274.85.STOCKS THAT MOVED* Fortis Healthcare, which is positioning itself for a possible battle with Malaysian sovereign wealth fund Khazanah for Singapore's Parkway Holdings, rose 1.5 percent to 154.70 rupees.On Thursday, the Financial Express reported Reliance Industries firm may buy a 26 percent stake in Fortis.* Mindtree climbed 3.4 percent to 569.40 rupees. The IT services firm said it received a contract from 'Aadhaar' earlier known as the Unique Identification Project.* Bajaj Hindusthan Ltd rose 1.9 percent to 116 rupees as it said its board had approved a proposal to absorb unit Bajaj Hindusthan Sugar.* Cairn India, a unit of UK's Cairn Energy, dropped 0.6 percent to 306.65 rupees as crude oil prices softened.MAIN TOP 3 BY VOLUME* Reliance Natural Resources on 15.9 million shares* Shree Ashtavinayak on 6.8 million shares* Reliance Communications on 6.1 million shares(Editing by Ranjit Gangadharan)

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