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Asia300

Indian shares jump to two-month high as Tata Motors gains

MUMBAI (NewsRise) -- Indian shares rose to a two-month high on Tuesday, snapping a two-session fall, as Tata Motors jumped after luxury unit Jaguar Land Rover reported strong monthly sales. A recovery in some blue chip stocks also helped the index gain.

The benchmark BSE Sensex rose 0.7% to 26,899.56 points, its highest closing level since Nov. 10. The broader NSE Nifty 50 index ended 0.6% higher at 8,288.60 points, a level last seen on Nov. 11.

Tata Motors and private lenders were among the top gainers on Tuesday, while mortgage lender Housing Development Finance Corporation was among the losers.

Twenty two of the 30 Sensex constituents ended higher, while overall advancing stocks beat declining ones 1,664 to 1,150, with 128 issues ending unchanged.

"Markets were mainly supported by buying interest in select index majors," said Jayant Manglik, president for retail distribution at Religare Securities. "Participants are currently maintaining a positive yet cautious approach due to the upcoming earnings season."

Tata Motors jumped 3% to 515.30 rupees as Jaguar Land Rover reported a 12% annual rise in retail sales to 55,375 units last month, recording its best-ever December sales.

ICICI Bank, India's biggest private lender, rose 0.9% to 260.30 rupees, while peer HDFC Bank, India's biggest lender by market value, gained 1.5% to 1,212.35 rupees.

"A stable set of quarterly numbers reported by smaller rival IndusInd Bank during the closing stages of the market helped these stocks outperform," said Anand James, chief market strategist at Geojit BNP Paribas Financial Services.

IndusInd Bank, a constituent of the Nifty index, rose 0.2% at 1,161.85 rupees after it reported a 29% jump in fiscal third-quarter profit, boosted by better-than-expected net interest income.

Among other key movers, Reliance Industries rose 0.9% to 1,087.10 rupees on expectations of strong earnings that are due Jan. 16. Cigarette maker ITC ended up 1.3% at 248.90 rupees on buying interest from local funds, traders said.

Software exporter Tata Consultancy Services gained for the second consecutive session, ending up 0.5% at 2,315.45 rupees ahead of its October-December earnings due Wednesday.

Housing Development Finance ended down 0.5% at 1,216.45 rupees. The stock has declined 4% in the last one month on concerns demand for home loans could take a hit on account of the government decision to scrap high value notes. A recent sharp reduction in interest rates on home loans have also led to fears of decline in margins for the mortgage lender, analysts said.

In rest of Asia, China's Shanghai Composite ended down 0.3% while South Korea's Kospi closed 0.2% lower. Hong Kong's Hang Seng index rose 0.8%.

--Dhanya Ann Thoppil

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