Indian shares rally on late buying spree

Mumbai: Indian shares rose 1.47 per cent on Tuesday on late buying in frontline stocks such as Reliance Industries and covering of short positions by domestic institutions ahead of an expected cut in US interest rates.

State-run explorer Oil and Natural Gas Corp jumped 6.1 per cent to Rs713.75 (Dh59.48) the biggest percentage rise of the top 30 stocks, aided by hopes of a sharp supply cut by Opec later this week that could bolster crude oil prices.

Largest listed firm Reliance Industries rose 3.6 per cent to Rs1,386.80, taking its gains to 22.6 per cent this month, largely due to foreign fund buying.

"There are a lot of trading opportunities available in the market. People are trying to take advantage of the short rally, before a fall in January as earnings results come," said Sharmila Joshi, vice-president at Systematix Shares.

The 30-share benchmark stock index ended up 144.59 points at a one-month closing high of 9,976.98, having risen above 10,000 for the first time since November 11 in the last few minutes of trade, with 20 components gaining.

The index has risen 9.7 per cent in December, but is still down 50.8 per cent so far in 2008.