News: Indian shares hit new high

(RTR 02/05/2006) Mumbai - Indian shares rose to a new high on Tuesday on strong earnings and fund inflows, with investors buying frontline stocks including drug firms, auto and cement makers.

Drug maker Dr. Reddy's Laboratories Ltd. jumped nearly 17 percent to 1,672 rupees on expectations it would gain from a U.S. court ruling on Monday that regulators had unlawfully denied a petition by Teva to market generic cholesterol drug Zocor.

Ranbaxy Laboratories gained more than 9 percent to 515.70 rupees.

Number two motorcycle maker Bajaj Auto Ltd. gained 1.7 percent to 3,063.80 rupees after it said vehicle sales in April rose 29 percent on the year.

Gujarat Ambuja Cement rose more than 3 percent to 128 rupees on expectations of strong April sales and firm prices as construction activity picks up across the country.

The 30-share BSE index rose 1.84 percent to 12,263.74 points by 0530 GMT. Gainers beat losers nearly four to one on trade of 67 million shares.

The 50-issue NSE index gained 1.44 percent to 3,609.15.

"Everything's looking bullish: earnings are good, fund flows are good and sentiment is positive," said Rohit Sekhsaria at Enam Securities.

"There are several positive triggers, so the bias is clearly positive," he said.

Foreign fund purchases of Indian equities total more than $4 billion this year.

The market was closed on Monday for a local holiday.

STOCKS ON THE MOVE

* Reliance Communications Ventures Ltd. was up 1.6 percent at 325 rupees after the BSE said it would include the stock in its benchmark index from June 2.

* Indian Overseas Bank gained 2 percent to 101.85 rupees after it said it would raise up to 12 billion rupees in debt in the year to March 2007.

* Hindalco Industries Ltd. rose more than 4 percent to 223.90 rupees after it posted a better-than-expected 39-percent jump in March quarter profit, helped by record metal prices.

* Indiabulls Financial Services Ltd. rose more than 13 percent to 354.30 rupees after the company's board on Monday approved spinning-off its real estate business into a separate company Indiabulls Real Estate Ltd.

TOP 3 BY VOLUME

* Reliance Natural Resources gained more than 4 percent on trade of 2.9 million shares.

* Himachal Futuristic Communications gained 6 percent on 2.2 million shares.

* Reliance Communications Ventures saw trade of 1.97 million.