Share index rises above 18,000 points - India News and Travel Times Provides India-centric and other News and Features

The share index on Wednesday climbed above 18,000 points for the first time in more than two years, driven by robust earnings expectations and firm global equities. Companies are set to report strong quarterly earnings, but traders said the stocks were expensive after rising more than 70 percent over the past one year. The 30-share Bombay Stock Exchange (BSE) index was trading up by 0.21 percent this morning at 17,978.30, with 23 of its components gaining. It rose to 18,008.40 in early deals, which was its highest level since Feb. 27, 2008. The analysts said the indications in the annual earning season and the coming monsoon season would be the two key drivers that would decide the direction of the market. "Going ahead, there are two key drivers, which will decide the direction of this market. One is the cue for the annual earning season, which is about to start. So what kind of growth Indian corporate is showing, that is one, and second key driver would be the coming monsoon," said Sunil Shah, a market analyst. "These are the two things, which will set the direction of this capital market; these are the two most important figures. I think the investors are waiting for these two things to unfold and if they are in line with the expectations or above expectations, the money will not only chase Indian paper, but international money will also be chased," added Shah. The 14-day relative strength index of the BSE benchmark was at 70, the upper limit that indicates the market was overbought. The market has been boosted by foreign funds that have bought around 4.9 billion dollars of equities so far in 2010, adding to 17.5 billion dollars received last year. With the Sensex touching over 18,000 points, the investors in Mumbai expressed hope that market would touch new heights by the end of 2010. "As an investor, I am very happy. The market, year on year, it has performed very well and we are expecting that further. Also, during the second half, after the monsoon if the monsoon is good, market will touch new heights during the year end," said Siddharth Kuvawala, an investor. Export-focused software companies, however, extended their losses for the third day, as the rupee tasted fresh 19-month highs, deepening further concerns. Automakers raced ahead on expectations and consumer demands for vehicles would remain strong on the back of rising incomes. Tata Motors was up by 1.7 percent, while Maruti Suzuki rose by 1.2 percent and Mahindra and Mahindra climbed by 0.7 percent. Banks continued to rise on the long-term prospects in a buoyant economy. ICICI Bank and HDFC Bank climbed 0.1 percent and 0.4 percent respectively, while top lender State Bank of India was trading flat. Software services firms Tata Consultancy Services and Infosys Technologies that get most their revenue from exports declined 0.3 percent and 0.1 percent respectively on the rupee's rise. Wipro shed 0.2 percent. Energy giant Reliance Industries, which has the highest weight on the Sensex, climbed 0.3 percent to 1,124.30 rupees. The BSE midcap index and the BSE smallcap index have gained 5.4 percent and 8 percent so far in 2010, outperforming the main index that has risen around 3 percent. The 50-share National Stock Exchange (NSE) index was up by 0.3 percent at Rs 5,379.20.