Indian shares end sharply up on fund buying; key indices at record highs UPDATE

Indian shares end sharply up on fund buying; key indices at record highs UPDATE

	Published : Mon, 23 Jul 2007 13:07 By : Agencies Print this Story

(update with stock specific input, dealers)

MUMBAI (Thomson Financial) - Indian shares ended higher with the country's two key indices touching record highs on heavy foreign fund buying based on strong company fundamentals, dealers said.

'The robust quarterly results from companies have cheered the market,' said Jigar Shah, director of KR Choksey Shares Pvt Ltd.

'Positive news flow and robust liquidity have also helped the market sentiment,' he added.

The Bombay Stock Exchange's benchmark Sensex closed at 15,732.20 points, up 1.07 pct, or 166.65 points, as it touched an all-time high of 15,773.37 late in the session.

The National Stock Exchange's broader S&P CNX Nifty ended at 4,619.35, up 1.17 pct.

Most corporates have so far reported robust earnings for the quarter ended June, with the exception of some information technology companies that have reported lower-than-expected earnings.

Dealers expect more positive results, with most companies expected to report quarterly earnings in the days ahead.

The market opened lower tracking weakness in other Asian markets which reacted to Wall Street's pullback on Friday, but recovered on heavy foreign fund buying.

Bharat Heavy Electricals Ltd was the top gainer on the Sensex as it rose 7.12 pct to 117.40 rupees on reports of a 18.29 bln rupee order for manufacturing and setting up three 500 MW thermal power units in the northern Indian state of Haryana.

Engineering and construction firm Larsen & Toubro Ltd was the second-highest gainer as it rose 5.62 pct to 2,614.40 rupees buoyed by a positive outlook for the capital goods sector.

Hindustan Unilever Ltd climbed 5.02 pct to 204.00 rupees after the consumer goods giant said it will consider a share buyback at its July 29 board meeting.

Among the BSE-30, pharma company Cipla Ltd fell the most as it dipped 4.75 pct to 191.35 rupees on a drop in first-quarter net profit.

The country's largest private sector bank ICICI Bank Ltd tumbled 1.53 pct to 970.05 rupees on fears of a quarter-on-quarter decline in its core earnings and rise in non-performing assets, dealers said.

United Breweries Holdings Ltd climbed 9.99 pct at 742.30 rupees on reports of it planning to sell around 20 pct of its consolidated aviation business to private equity investors.

IVRCL Infrastructures & Projects Ltd gained 2.83 pct at 415.90 rupees after a joint venture led by the company won a 6.41 bln rupee contract from the government of the Indian state of Andhra Pradesh.

Sun Pharmaceuticals Ltd rose 0.68 pct at 986.90 rupees after its consolidated net profit for the first quarter rose to 2.27 bln rupees from 1.77 bln rupees last year.

TFN.newsdesk@thomson.com

ami/ssa/slj

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.