Reliance leads Indian shares to another record high
Friday, 20 July 2007
MUMBAI, July 19 (Reuters): Indian shares rose to their 11th record high in 14 sessions Thursday, led by index heavyweights Reliance Industries and Infosys Technologies , but Wipro Ltd. fell on lower-than-expected earnings.
The 30-issue BSE index was up 1.03 per cent, or 157.67 points, at 15,456.24. It hit a record high of 15,493.53, helped by foreign buying of stocks, in morning deals.
Leading private firm Reliance Industries, which has the largest index weighting, rose 2.30 per cent to 1,862 rupees, after hitting a life high of 1,863 rupees-its third in as many days.
Reliance will report its April-June earnings on July 28.
"Reliance is likely to record higher refining margins this year and we expect its quarterly earnings to be good," said Sandeepa Vig Arora, vice-president at India Infoline.
Foreign funds have so far bought Indian equities worth US$9.0 billion in 2007 -- more than the $7.90 billion they bought over the whole of 2006 -- including $3.30 billion over the first 12 trading days of July, data showed.
Arora said there was a lot of money in the market, and the index could extend its record run.
Morgan Stanley said in a report that the market was not showing any signs of overheating.
"The market still seems to have some steam left before it becomes over-cooked," it said.
Shares in third-ranked software services provider Wipro fell 0.80 per cent to 500.45 rupees after it reported a below-forecast 16 per cent rise in June quarter earnings.
The 30-issue BSE index was up 1.03 per cent, or 157.67 points, at 15,456.24. It hit a record high of 15,493.53, helped by foreign buying of stocks, in morning deals.
Leading private firm Reliance Industries, which has the largest index weighting, rose 2.30 per cent to 1,862 rupees, after hitting a life high of 1,863 rupees-its third in as many days.
Reliance will report its April-June earnings on July 28.
"Reliance is likely to record higher refining margins this year and we expect its quarterly earnings to be good," said Sandeepa Vig Arora, vice-president at India Infoline.
Foreign funds have so far bought Indian equities worth US$9.0 billion in 2007 -- more than the $7.90 billion they bought over the whole of 2006 -- including $3.30 billion over the first 12 trading days of July, data showed.
Arora said there was a lot of money in the market, and the index could extend its record run.
Morgan Stanley said in a report that the market was not showing any signs of overheating.
"The market still seems to have some steam left before it becomes over-cooked," it said.
Shares in third-ranked software services provider Wipro fell 0.80 per cent to 500.45 rupees after it reported a below-forecast 16 per cent rise in June quarter earnings.