MUMBAI, March 17 (Reuters) - Indian shares rose more than 1
percent to near two-month highs on Wednesday morning, led by
gains in energy major Reliance Industries and
financials, with world equities rising after the United States
kept monetary policy unchanged.
Reliance Industries extended gains and climbed 0.8 percent to 1,075.45 rupees after a source told Reuters the company is seeking a joint venture with Atlas Energy to develop the U.S. firm's Marcellus Shale gas operations.
'It looks like they are out to buy an asset at the right price,' said Gaurav Dua, head of research at Sharekhan said.
'If things don't work out, they are moving on to other opportunities,' he added.
By 10:44 a.m. (0514 GMT), the 30-share BSE Index was trading up 1.04 percent at 17,563.23, with 29 of its components gaining.
It rose as much as 17576.78 earlier, its highest level since Jan. 20.
'The market may see upside from current levels after the consolidation we saw, as advance tax figures for March quarter were promising,' said Jigar Shah, vice-president of equity sales at Motilal Oswal.
'Also, global cues are good,' added Shah.
Foreign funds have pumped in more than $2.5 billion in Indian equities since the start of this month to March 12, leading to a nearly 7 percent rise in the benchmark index.
Financials rose, supported by a broad market rally, and on improving long-term prospects in the growing economy.
Top lender State Bank of India rose 1 percent while private lenders ICICI Bank and HDFC Bank gained 1.5 percent and 0.1 percent respectively.
Mortgage lender Housing Development Finance Corp rose 0.9 percent.
Non-ferrous metals producer Sterlite Industries climbed 1.3 percent as a softer dollar pushed copper prices higher.
Tata Steel, world's eighth-largest steel maker by output, climbed 1.9 percent while aluminium maker Hindalco rose 2.1 percent.
In the broader market, gainers more than doubled the number of losers in a volume of 129 million shares.
The 50-share NSE index was up 1.1 percent at 5,252.75.
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Reliance Industries extended gains and climbed 0.8 percent to 1,075.45 rupees after a source told Reuters the company is seeking a joint venture with Atlas Energy to develop the U.S. firm's Marcellus Shale gas operations.
'It looks like they are out to buy an asset at the right price,' said Gaurav Dua, head of research at Sharekhan said.
'If things don't work out, they are moving on to other opportunities,' he added.
By 10:44 a.m. (0514 GMT), the 30-share BSE Index was trading up 1.04 percent at 17,563.23, with 29 of its components gaining.
It rose as much as 17576.78 earlier, its highest level since Jan. 20.
'The market may see upside from current levels after the consolidation we saw, as advance tax figures for March quarter were promising,' said Jigar Shah, vice-president of equity sales at Motilal Oswal.
'Also, global cues are good,' added Shah.
Foreign funds have pumped in more than $2.5 billion in Indian equities since the start of this month to March 12, leading to a nearly 7 percent rise in the benchmark index.
Financials rose, supported by a broad market rally, and on improving long-term prospects in the growing economy.
Top lender State Bank of India rose 1 percent while private lenders ICICI Bank and HDFC Bank gained 1.5 percent and 0.1 percent respectively.
Mortgage lender Housing Development Finance Corp rose 0.9 percent.
Non-ferrous metals producer Sterlite Industries climbed 1.3 percent as a softer dollar pushed copper prices higher.
Tata Steel, world's eighth-largest steel maker by output, climbed 1.9 percent while aluminium maker Hindalco rose 2.1 percent.
In the broader market, gainers more than doubled the number of losers in a volume of 129 million shares.
The 50-share NSE index was up 1.1 percent at 5,252.75.
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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