Indian shares close higher on fund buying, firm trend in Asian markets UPDATE

Indian shares close higher on fund buying, firm trend in Asian markets UPDATE

	Published : Thu, 21 Jun 2007 14:23 By : Agencies Print this Story

MUMBAI (Thomson Financial) - Indian shares closed higher on good buying interest in blue-chip stocks from domestic and foreign funds, spurred by positive trends in Asian markets, dealers said.

The Bombay Stock Exchange's 30-share Sensex rose 0.61 pct, or 87.29 points, to end the day at 14,499.24 points. The National Stock Exchange's S&P CNX Nifty climbed 0.44 pct to finish at 4,267.40.

Amongst the BSE-30 stocks, 20 stocks advanced while 10 declined.

Trading was centred largely on energy, automobiles and heavy engineering company shares.

Shares of Reliance Energy Ltd and Larsen & Toubro Ltd were among the top gainers today.

Shares of Reliance Energy Ltd rose to 560.40 rupees, up 22.40 rupees or 4.16 pct, while Larsen & Toubro Ltd gained 78.65 rupees, or 3.88 pct, at 2,106.60 rupees.

Reliance Energy gained on market buzz that the company is likely to get approval for the projects it will set up in the northern Indian state of Uttar Pradesh, dealers said.

Bharat Heavy Electricals Ltd rose 3.64 pct to end at 1,481.70 rupees.

'The orderbooks of the capital goods companies are nearly full for the next two years. There is clear visibility for these stocks,' said Ambareesh Baliga, vice-president at Karvy Stock Broking, referring to the surge in the capital goods companies' shares.

State-run Hindustan Petroleum Corp Ltd rose 3.97 pct to 273.40 rupees on news that the federal government has allowed steel baron Lakshmi Mittal to pick up a 49 pct stake in the company's 9 mln tonne refinery at Bhatinda in the northern Indian state of Punjab.

The news boosted other refinery stocks as well, dealers said.

Chennai Petroleum Corp Ltd and Bharat Petroleum Corp Ltd rose 13.72 pct and 4.65 pct to 285.50 rupees and 347.70 rupees respectively.

There has been talk in the market that Chennai Petroleum may merge with its parent, Indian Oil Corp, a dealer said.

Shares of banking companies were in the limelight after Goldman Sachs raised its rating on State Bank of India and ICICI Bank's follow-on offer received a good response, he added.

The countrys largest bank State Bank of India gained 1.43 pct at 1,445.55 rupees while ICICI Bank rose 0.20 pct to 949.70 rupees.

TFN.newsdesk@thomson.com

ami/aku/ami/ssa/lce

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.