Indian shares take momentum from Europe's strong start but p-note anxiety weighs

Indian shares take momentum from Europe's strong start but p-note anxiety weighs

	Published : Thu, 25 Oct 2007 09:50 By : Agencies Print this Story

MUMBAI (Thomson Financial) - Indian shares extended gains to over 1 pct led by gains in metal shares, with local sentiment getting a boost from the firm trend across major European markets, but anxiety about a possible tightening of foreign investment norms persisted.

Euroshares opened firm on upbeat sentiment in telecom stocks and as overnight data on existing home sales in the US raised hope that the Federal Reserve will cut interest rates in the near future.

At 0806 GMT, the Bombay Stock Exchange's benchmark Sensex traded 1.43 pct or 264.06 points higher at 18,776.97, while the National Stock Exchange's S&P CNX Nifty was up 1.19 pct at 5,561.60 points.

The benchmark indices were little changed in opening trade, as investors kept their fingers crossed ahead of the Indian market regulator's board meeting to discuss a set of proposals aimed at tightening regulations for foreigners to invest in the domestic market.

Commodity shares traded higher tracking other Asian markets today, as investors bet that lower US interest rates could spur demand for commodities in the world's largest economy. Copper and aluminium miner Hindalco Industries Ltd rose 4.03 pct to 197.10 rupees, while Tata Steel Ltd gained 7.17 pct to 981 rupees.

Banking shares also extended early gains ahead of the Reserve Bank of India's monetary policy review scheduled next week. ICICI Bank was up 3.04 pct at 1,131 rupees, while State Bank of India gained 2.20 pct to 1,950 rupees.

Reliance Energy was up 2.27 pct at 1,691.50 rupees after its promoter ADAG quelled talk that the initial public offer of subsidiary Reliance Power Ltd may be delayed. The company said it is awaiting approval of the draft prospectus for the IPO from the

market regulator.

Power equipment maker ABB Ltd rose 0.91 pct to 1,467 after the company said its net profit for the third-quarter ended Sept 30 rose 41 pct due to higher revenues, operational efficiencies and effective cost management.

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