Indian shares extend record run, Karachi down
Wednesday, 25 July 2007
MUMBAI, July 24 (Reuters): Indian shares hit their 14th record high in 17 sessions Tuesday before closing up 0.40 per cent, driven by strong investor interest in technology and engineering and construction issues.
The 30-issue BSE index ended 62.72 points higher at a record close of 15,794.92, even though 17 components fell, after hitting a life high of 15,868.85 during trade. The index has risen 7.80 per cent in July and is up 14.60 per cent in 2007.
The strong gains have lifted the index's 14-day relative strength index to 90 per cent, a level seen as a signal it is overbought.
Leading capital goods firms Larsen & Toubro Limited and state-run Bharat Heavy Electricals Limited continued their record runs, powered by the need for growing investment in India's creaky infrastructure.
"We have a very bullish view on the capital goods sector, especially on those involved in power sector, because of the huge investments seen in it over next few years," said Hitesh Kuvelkar, head of research at First Global Securities.
Larsen ended up 2.0 per cent at a record close of 2,667.55 rupees, taking its gains for the year to 85 per cent.
Power equipment maker Bharat Heavy Electricals ended up 4.0 per cent at a record close of 1,835.45 rupees, taking its gains for the year to 60 per cent.
"Not only they have maintained growth in their top line, they have gradually improved their margins as well and we see this trend to continue for the next two to three years," Kuvelkar said.
Traders said fourth-largest software services exporter Satyam Computer Services Limited and second-ranked Infosys Technologies Limited gained on foreign buying and some covering of short positions ahead of the expiry of derivative contracts Thursday.
Stock futures contracts expire on the last Thursday of every month, and normally most are rolled over to the next month.
Satyam also said it expected a 75 per cent rise in annual revenues from its South African operations. Satyam's shares rose 5.40 per cent to 518.30 rupees-its strongest close since March 2000 -- while Infosys gained 1.50 per cent at 1,976.60 rupees.
Data showed that foreign funds bought US$300 million of Indian equities on Friday, taking their total investment to $9.80 billion in 2007 -- more than the $7.90 billion they bought in all of 2006 and edging closer to the record $10.70 billion in 2005.
In the broader market, losers led gainers 1,775 to 887 on volume of 315.50 million shares.
The 50-issue NSE index ended up just 0.03 per cent at 4,620.75 points, after hitting a life high of 4,647.95 in early deals.
Elsewhere in the region, Karachi's 100-share index was down 0.83 per cent at 13,553.00 points, while Colombo's All-Share index rose 0.90 per cent to 2,411.76.
The 30-issue BSE index ended 62.72 points higher at a record close of 15,794.92, even though 17 components fell, after hitting a life high of 15,868.85 during trade. The index has risen 7.80 per cent in July and is up 14.60 per cent in 2007.
The strong gains have lifted the index's 14-day relative strength index to 90 per cent, a level seen as a signal it is overbought.
Leading capital goods firms Larsen & Toubro Limited and state-run Bharat Heavy Electricals Limited continued their record runs, powered by the need for growing investment in India's creaky infrastructure.
"We have a very bullish view on the capital goods sector, especially on those involved in power sector, because of the huge investments seen in it over next few years," said Hitesh Kuvelkar, head of research at First Global Securities.
Larsen ended up 2.0 per cent at a record close of 2,667.55 rupees, taking its gains for the year to 85 per cent.
Power equipment maker Bharat Heavy Electricals ended up 4.0 per cent at a record close of 1,835.45 rupees, taking its gains for the year to 60 per cent.
"Not only they have maintained growth in their top line, they have gradually improved their margins as well and we see this trend to continue for the next two to three years," Kuvelkar said.
Traders said fourth-largest software services exporter Satyam Computer Services Limited and second-ranked Infosys Technologies Limited gained on foreign buying and some covering of short positions ahead of the expiry of derivative contracts Thursday.
Stock futures contracts expire on the last Thursday of every month, and normally most are rolled over to the next month.
Satyam also said it expected a 75 per cent rise in annual revenues from its South African operations. Satyam's shares rose 5.40 per cent to 518.30 rupees-its strongest close since March 2000 -- while Infosys gained 1.50 per cent at 1,976.60 rupees.
Data showed that foreign funds bought US$300 million of Indian equities on Friday, taking their total investment to $9.80 billion in 2007 -- more than the $7.90 billion they bought in all of 2006 and edging closer to the record $10.70 billion in 2005.
In the broader market, losers led gainers 1,775 to 887 on volume of 315.50 million shares.
The 50-issue NSE index ended up just 0.03 per cent at 4,620.75 points, after hitting a life high of 4,647.95 in early deals.
Elsewhere in the region, Karachi's 100-share index was down 0.83 per cent at 13,553.00 points, while Colombo's All-Share index rose 0.90 per cent to 2,411.76.