GO
Loading...

Indian shares gain; Infosys rises ahead of earnings

Thursday, 11 Oct 2012 | 6:04 AM ET

* BSE ends 0.93 pct higher; NSE gains 0.99 pct

* Aug factory output and inflation also on traders' radar

* Unitech surges after settlement with Telenor

By Abhishek Vishnoi

MUMBAI, Oct 11 (Reuters) - Indian shares rose on Thursday as expectations of better-than-expected earnings sent Infosys

and HDFC Bank higher a day before they report results.

The focus has shifted to July-September earnings, which come after the government's slew of economic and fiscal measures helped overcome worries about slowing growth and a continued threat of credit ratings downgrades.

India will unveil August factory data on Friday with a Reuters poll showing a modest 1.1 percent growth annually. Industrial ouput data, along with inflation numbers on Monday, will be key in setting expectations for the central bank meeting at the end of the month.

However, optimism is growing that India's growth slump is passing. A Reuters poll showed the economy will gradually recover over the next year, but the rate of expansion for this fiscal year will still be the weakest in a decade.

"Infosys results are expected to be good... that will give a positive response to the market," said R.K. Gupta, managing director at Taurus Mutual Fund.

The market will closely watch corporate earnings and any announcements from the government, said Gupta.

The BSE index

rose 0.93 percent, or 173.65 points, to end at 18,804.75 points. The 50-share NSE index

gained 0.99 percent, or 55.90 points, to end at 5,708.05 points, closing above the psychologically important 5,700 level.

Infosys is expected to post a 24.9 percent rise in profit in the quarter ended Sept. 30 to 23.8 billion rupees ($453.59 million).

Infosys gained 1.16 percent, while HDFC Bank rose 1.12 percent. Both are set to report their July-September earnings on Friday.

Fertiliser stocks, including Chambal Fertilisers and Chemicals Ltd

, gained after the government raised the price of urea, the most-used nitrogenous fertiliser, by 50 rupees per tonne on Thursday.

However, traders said the hike was way below expectations, translating to less than 1 percent. Analyst said the hike would in no way support the margin improvement for fertiliser makers.

Rashtriya Chemicals & Fertilizers

rose 4.43 percent, while Chambal Fertilisers and Chemicals Ltd gained 2.6 percent.

Unitech shares gained 17.24 percent after Norwegian telecoms group Telenor

dissolved its joint venture with the Indian company, hoping to distance itself from a scandal over the award of operating licences and set out a new plan to win business in the subcontinent.

DLF Ltd

shares gained 3.8 percent after falling 11.91 percent in the previous three sessions.

The country's biggest property developer was likely to suffer no material impact from accusations by anti-corruption activists of improper dealings, and the issue had been largely priced in to the stock, UBS said in a report.

However, Suzlon Energy Ltd

fell 2.4 percent after bondholders rejected a four-month extension on redemption of more than $200 million in overseas convertible bonds due on Thursday.

Pharmaceutical stocks such as Cipla

fell on expectations of a stricter drug pricing regime ahead of a cabinet meeting next week to finalise the new pharmaceutical pricing policy.

Cipla fell 1.9 percent while Lupin

ended 3.1 percent lower.

For additional stocks on the move double click

FACTORS TO WATCH

* Euro subdued by Spanish rating downgrade

* Oil pushes higher on Syria tension

* Spanish bonds inch towards 6 pct after downgrade

* Foreign institutional investor flows

* For closing rates of Indian ADRs

ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... OTHER MARKETS: Wall Street .... Gold ....... Currency.. Eurostocks..... Oil ........ JP bonds... ADR Report ..... LME metals. US bonds.. Stocks News US.. Stocks News Europe DIARIES & DATA: Indian Data Watch Asia earnings diary U.S. earnings diary European diary Indian diary Wall Street Week Ahead Eurostocks Week Ahead TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General Asia Macro data

(Additional Reporting by Manoj Dharra; Editing by Subhranshu Sahu)

((abhishek.vishnoi@thomsonreuters.com)(+91 22 61807225)(Reuters Messenger)(abhishek.vishnoi.reuters.com@reuters.)(net))

Keywords: MARKETS INDIA STOCKS

  Price   Change %Change
HDFC Bank Ltd
---
INFY-IN
---
TEL
---