Stock Syndrome

MUMBAI - Indian shares ended higher on Wednesday amid slight gains in most Asian indices, positive openings in European markets, oil prices retreating from record-highs and a depreciating rupee, which induced buying in export-oriented scrips.

'The rupee depreciation is adding a positive trigger in the market at this time and the export-oriented stocks are getting a boost, though the oil and gas companies may see some correction,' said V.V.L.N. Sastry, country head of Firstcall India. 'The rupee may continue to be in the range of 42 to 45 against the U.S. dollar and the Sensex may see an upside in the mid-term but resist at 500 to 700 points above the current close,' he added.

The 30-share benchmark Sensitive Index, or Sensex, of the Bombay Stock Exchange (BSE) rose 225.49 points or 1.35 percent to 16,978.35 rupees and the broader 50-share S&P CNX Nifty of the National Stock Exchange (NSE) gained 53.95 points or 1.09 percent to 5,011.75.

Oil prices eased from Tuesday's record high of $126.98 a barrel to drop below the $126-level. At 9:51 a.m. in London, New York-traded West Texas Intermediate crude for June delivery was down 15 cents at $125.65 per barrel while Brent crude was down 78 cents at $123.32.

Meanwhile the Indian rupee continued to weaken against the greenback on dollar-buying by oil refiners, as crude prices stay relatively high. The currency fell to a fresh 13-month low of 42.60 against the U.S. dollar during the day.

Among Sensex stocks, 22 advanced compared with 8 declines. India's biggest software exporter Tata Consultancy Services Ltd. (TCS) was top gainer soaring 7.09 percent or about 64 rupees to 969.95 rupees. About 0.9 million TCS shares exchanged hands today, much above the 200-day average daily volume of 0.2 million shares. Second-biggest exporter Infosys Technologies Ltd. also gained 4.53 percent to 1,826.30 rupees.

Software companies export more than half of their products to the United States, and the rupee's continuing fall against the dollar is set to boost margins of IT companies, which were hit by the rupee's 12 percent climb against the greenback last year. The Indian currency has fallen more than 7 percent so far this year against the U.S. dollar.

Aluminium producer Hindalco Industries Ltd. rose 6.86 percent to 192.30 rupees and Tata Steel Ltd. was up 4.12 percent at 886.35 rupees.

Reliance Industries Ltd. advanced 1.14 percent to 2,529.95 rupees and ICICI Bank Ltd. edged 0.95 percent higher to 896.25. Reliance and ICICI constitute about a quarter of the benchmark gauge.

Engineering and construction conglomerate Larsen & Toubro Ltd. climbed 0.56 percent to 2,830.40 rupees and DLF Ltd., the country's biggest property developer, gained 1.29 percent to 622.95.

Oil & Natural Gas Corp. Ltd. was top loser, sinking 6 percent or about 58 rupees to 939.80 on worries that it may have to share more subsidy burden in the domestic market, where prices of oil is controlled by the government. ONGC witnessed heavy activity on the BSE with 1 million shares traded, much above the 200-day average daily volume of 0.3 million shares.

Cement company ACC Ltd. fell 2.30 percent to 667.30 rupees and Ambuja Cements Ltd. declined 1.93 percent to 109.40 on worries that they may follow other smaller peers in cutting prices despite rising input costs.

Among the 13 BSE sector indices, ten advanced led by the metal gauge, which rose 4.36 percent. Dealers said the rupee's fall against the U.S. dollar triggered buying in metal counters, as metal companies have 'substantial' export revenues.

The IT gauge gained 3.80 percent followed by the technology counter which rose 3.19 percent.

The public sector index was the top loser as it declined 0.95 percent, pulled down mainly by ONGC, which weighs more than 14 percent in the gauge.

In the broader market 1,425 advances edged past 1,239 declines on a volume of 379.5 million shares.