Share market upbeat on foreign investment

The KSE-100 index surged by 461.46 points, or 5.4 percent, during the week ended on September 5, 2009 and closed at nine-month high at 9,002.68 points on the back of foreign investors´ interest. A net inflow of $86.4 million of foreign portfol

BSE Sensex Ends Up 0.7%

Positive closes in most regional markets and fund buying in some blue chips sent Indian shares higher for a third straight session Tuesday.

The Bombay Stock Exchange's 30-stock Sensitive Index ended 0.7% at 16,123.67. It traded between 16,030.56 and 16,232.16 during the session.

The index last closed above this level May 30, 2008, when it ended at 16,415.57. The Sensex, which declined 1.5% in the previous week, has gained nearly 67% in 2009, aided by sustained buying by overseas funds.

Foreign funds have bought $8.34 billion worth of shares in calendar year 2009 until Monday. They sold $11.97 billion worth of shares in 2008.

"The markets are probably picking up on those stocks which have been neglected so far in the recent rally," said Deven Choksey, managing director of K.R. Choksey Securities.

On the National Stock Exchange, the 50-stock S&P CNX Nifty closed up 0.5% to 4,805.25.

The Nifty has breached the key 4,730 resistance level, which is fueling the momentum in the market, said Alex Mathew, head of research at Geojit Financial Services.

Reports of revival of the monsoon in some parts of the country also drove optimism, he added.

Total traded volume on the Bombay Stock Exchange was 71.76 billion rupees ($1.47 billion), up from 60.82 billion rupees Monday. However, losers outnumbered gainers 1,462 to 1,360, while 67 stocks were unchanged.

The Sensex is expected to trade in a 15,500-16,350 range in the near term, local brokerage Khandwala Securities said.

Gains were led by Reliance Industries. India's most valued company closed up 3.7% at 2,075.15 rupees, its highest level since Aug. 5. The company has underperformed the Sensex by about 5% over the past month amid the ongoing gas pricing dispute with Reliance Natural Resources.

State Bank of India, the country's largest lender by assets, rose 4.4% to 1,894.15 rupees after Chairman O.P. Bhatt said earnings for the quarter ended Sep. 30 are expected to grow 30%-35%. Mr. Bhatt's comment that the bank had no mark-to-market losses in its treasury operations as of now in this quarter helped sentiments.

Metal stocks continued to witness buying and ended higher for a third straight session on hopes the recent uptick in global base metal prices could help improve sales.

"The international outlook for metals is very bullish and that is driving basic and nonferrous metal stocks in India," Geojit's Mathew said.

Copper producer Sterlite Industries closed up 4.8% at 740.30 rupees, Tata Steel rose 3.2% to 456.15 rupees and aluminum maker Hindalco Industries ended up 6.1% at 114.85 rupees.

However, consumer goods maker Hindustan Unilever fell 2.7% to 266.70 rupees amid concerns weak monsoon rains this year could hurt demand for its products in rural India.

Reliance Communications finished 2.3% lower on profit-taking. The stock had jumped about 20% in the previous five sessions.

Dollar near US70c as CSL boosts Australian sharemarket

THE Australian dollar inched towards US70 cents this afternoon and shares rose as bargain hunters swooped on healthcare stocks. The was trading at US69.91 cents from yesterday’s close of...