MUMBAI--Indian shares were trading slightly higher early Friday, supported by bargain hunting in Larsen & Toubro and ICICI Bank and a rise in demand linked to the start of March derivatives contracts.
Most local stocks declined sharply Thursday amid disappointment over the federal budget, which increased social spending and raised taxes for the rich.
At 0500 GMT, the Bombay Stock Exchange's S&P BSE Sensex was up 0.4% at 18943.52, while the National Stock Exchange's 50-share Nifty index was 0.5% higher at 5721.40.
"Stocks are looking attractive after a fall Thursday, but if the rupee weakens [against the dollar] then we may see some profit-taking," said a senior executive at a Hong Kong based mutual fund who declined to be named.
The executive said foreign investors will be watching the rupee's moves after the budget announcement and the release of weaker-than-expected economic growth data for the three months ended in December.
The dollar was last trading at 54.55 rupees versus 54.35 rupees in late Asian trade Thursday.
India's gross domestic product grew 4.5% during the October-December period from a year earlier, slowing from a 5.3% rise in the previous three months. Economists in a poll had predicted a 4.8% expansion.
Among gainers, Larsen & Toubro was 2.3% higher at 1,396.00 rupees, while ICICI Bank was 1.7% higher at 1,057.55 rupees. Both had recorded sharp falls on Thursday.
No comments:
Post a Comment