Business | Markets
Infrastructure shares lead rise in India index
Indian shares rose 3.2 per cent yesterday to their highest close in nearly a week, boosted by a nuclear trade ban waiver that raised hopes for large investment in the energy-hungry nation.
- Reuters
- Published: 23:49 September 8, 2008
New Delhi: Indian shares rose 3.2 per cent yesterday to their highest close in nearly a week, boosted by a nuclear trade ban waiver that raised hopes for large investment in the energy-hungry nation.
Sentiment was also bolstered after the US moved to take control of top mortgage firms Fannie Mae and Freddie Mac, triggering a global stocks rally with the European stocks rising about four per cent and MSCI All-Country World index up nearly two per cent.
Traders said the day's trend was set by the 45-member Nuclear Suppliers Group (NSG) nations decision on Saturday to give a one-off waiver allowing them to do business with India.
"Today's move is more because of the NSG approval than global factors. There are hopes that this will translate into lots of foreign direct investment in the sector and boost the economy," said Jigar Shah at Kim Eng Securities India.
JPMorgan estimates a successful Indo-US nuclear deal could translate into orders of about $10 billion in the next five years.
The Confederation of Indian Industry said it expected about $27 billion investment in nuclear power in the next 15 years.
The 30-share main BSE index rose 3.18 per cent, or 461.14 points, to 14,944.97, its best close since September 2, with all the components gaining.
Banks rose on optimism the damage of the global financial crisis would be moderated after Washington took over top mortgage firms Fannie Mae and Freddie Mac, triggering a global stocks rally.
In the broader market, 1,670 gainers were ahead of 1,040 losers on volume of about 241 million shares.
The 50-share NSE index gained three per cent to 4,482.30.
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