Bangalore: Indian shares rose more than one per cent on Wednesday morning, led by gains in index heavyweight Reliance Industries and supported by short covering a day ahead of the expiry of monthly futures contracts.
A lack of cues from Asia, where several markets are still closed for Christmas holidays, led to choppiness in early trade after the market had risen 3.61 per cent on Monday. Shares in largest listed firm Reliance Industries rose 2.5 per cent to Rs 2,856.25. The stock has more than doubled so far this year.
At 11:25 am, the 30-share BSE index was up 1.11 per cent, or 219.50 points, at 20,073.62, with 23 components gaining. It was the first time since December 17 the index had been above 20,000.
"People are building up fresh positions in anticipation of strong quarterly results next month. There are also hopes that foreign fund flows will be strong from next month," said Amitabh Chakraborty, President of equities at Religare Securities.
The main index is 2 per cent below its December 13 record high of 20,498.11. It is up more than 45 per cent in 2007 as the year draws to a close.
Brokerage India Infoline said a "fresh dose of buying", especially from foreign funds, was needed for the markets to rise significantly from the current levels.
Data showed foreigners turned aggressive sellers last week, selling $1.3 billion worth of Indian shares in four sessions after pouring in $1.5 billion in 11 sessions to December 14.
Infrastructure play Larsen & Toubro was up 2.7 per cent at Rs 4,197.70. India Infoline recommended a "buy" on the stock because of the firm's healthy order book, with a short-term price target of Rs 4,400.
State-run State Bank of India gained 3.1 per cent to Rs 2,402.15 on media reports the board of the country's largest bank would meet on January 25 to consider merging six associate banks with it.
In the broader market, 2,182 gainers were ahead of 555 losers on volume of 251 million shares.
The broader 50-issue NSE index was up 0.97 percent at 6,043.45.
Elsewhere in the region, Karachi's 100-share index edged down 0.09 percent at 14,775.59, while Colombo's All-share index was up 0.23 per cent at 2,531.68.
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